Correlation Between Eastern Star and Central Pattana
Can any of the company-specific risk be diversified away by investing in both Eastern Star and Central Pattana at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eastern Star and Central Pattana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastern Star Real and Central Pattana Public, you can compare the effects of market volatilities on Eastern Star and Central Pattana 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 Eastern Star with a short position of Central Pattana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Star and Central Pattana.
Diversification Opportunities for Eastern Star and Central Pattana
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eastern and Central is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Star Real and Central Pattana Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Pattana Public and Eastern Star 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 Eastern Star Real are associated (or correlated) with Central Pattana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Pattana Public has no effect on the direction of Eastern Star i.e., Eastern Star and Central Pattana go up and down completely randomly.
Pair Corralation between Eastern Star and Central Pattana
Assuming the 90 days trading horizon Eastern Star Real is expected to generate 30.32 times more return on investment than Central Pattana. However, Eastern Star is 30.32 times more volatile than Central Pattana Public. It trades about 0.04 of its potential returns per unit of risk. Central Pattana Public is currently generating about -0.03 per unit of risk. If you would invest 32.00 in Eastern Star Real on November 27, 2024 and sell it today you would lose (13.00) from holding Eastern Star Real or give up 40.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Star Real vs. Central Pattana Public
Performance |
| Timeline |
| Eastern Star Real |
| Central Pattana Public |
Eastern Star and Central Pattana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Star and Central Pattana
The main advantage of trading using opposite Eastern Star and Central Pattana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Star position performs unexpectedly, Central Pattana 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 Central Pattana will offset losses from the drop in Central Pattana's long position.| Eastern Star vs. Land and Houses | Eastern Star vs. AP Public | Eastern Star vs. Lalin Property Public | Eastern Star vs. Quality Houses Public |
| Central Pattana vs. CP ALL Public | Central Pattana vs. Bangkok Dusit Medical | Central Pattana vs. Airports of Thailand | Central Pattana vs. Advanced Info Service |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |