Correlation Between Erawan and Ratch Group
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By analyzing existing cross correlation between The Erawan Group and Ratch Group Public, you can compare the effects of market volatilities on Erawan and Ratch Group 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 Ratch Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Erawan and Ratch Group.
Diversification Opportunities for Erawan and Ratch Group
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Erawan and Ratch is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding The Erawan Group and Ratch Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratch Group Public 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 Ratch Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratch Group Public has no effect on the direction of Erawan i.e., Erawan and Ratch Group go up and down completely randomly.
Pair Corralation between Erawan and Ratch Group
Assuming the 90 days trading horizon Erawan is expected to generate 1.91 times less return on investment than Ratch Group. But when comparing it to its historical volatility, The Erawan Group is 1.41 times less risky than Ratch Group. It trades about 0.1 of its potential returns per unit of risk. Ratch Group Public is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Ratch Group Public on November 2, 2024 and sell it today you would earn a total of 2,900 from holding Ratch Group Public or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Erawan Group vs. Ratch Group Public
Performance |
| Timeline |
| Erawan Group |
| Ratch Group Public |
Erawan and Ratch Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Erawan and Ratch Group
The main advantage of trading using opposite Erawan and Ratch Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Erawan position performs unexpectedly, Ratch Group 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 Ratch Group will offset losses from the drop in Ratch Group's long position.| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan vs. CP ALL Public |
| Ratch Group vs. Electricity Generating Public | Ratch Group vs. The Siam Cement | Ratch Group vs. PTT Public | Ratch Group vs. The Erawan Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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