Correlation Between Erawan and Major Cineplex
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By analyzing existing cross correlation between The Erawan Group and Major Cineplex Group, you can compare the effects of market volatilities on Erawan and Major Cineplex and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Erawan with a short position of Major Cineplex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erawan and Major Cineplex.
Diversification Opportunities for Erawan and Major Cineplex
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Erawan and Major is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding The Erawan Group and Major Cineplex Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Major Cineplex Group and Erawan is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on The Erawan Group are associated (or correlated) with Major Cineplex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Major Cineplex Group has no effect on the direction of Erawan i.e., Erawan and Major Cineplex go up and down completely randomly.
Pair Corralation between Erawan and Major Cineplex
Assuming the 90 days trading horizon The Erawan Group is expected to generate 3.49 times more return on investment than Major Cineplex. However, Erawan is 3.49 times more volatile than Major Cineplex Group. It trades about 0.01 of its potential returns per unit of risk. Major Cineplex Group is currently generating about 0.0 per unit of risk. If you would invest 400.00 in The Erawan Group on September 1, 2024 and sell it today you would earn a total of 0.00 from holding The Erawan Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
The Erawan Group vs. Major Cineplex Group
Performance |
| Timeline |
| Erawan Group |
| Major Cineplex Group |
Erawan and Major Cineplex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erawan and Major Cineplex
The main advantage of trading using opposite Erawan and Major Cineplex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erawan position performs unexpectedly, Major Cineplex can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Major Cineplex will offset losses from the drop in Major Cineplex's long position.| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan vs. CP ALL Public |
| Major Cineplex vs. Healthlead Public | Major Cineplex vs. JD Food PCL | Major Cineplex vs. TMBThanachart Bank Public | Major Cineplex vs. Exotic Food Public |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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