Correlation Between Everland Public and PINTHONG INDUSTRIAL
Can any of the company-specific risk be diversified away by investing in both Everland Public and PINTHONG INDUSTRIAL 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 Everland Public and PINTHONG INDUSTRIAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everland Public and PINTHONG INDUSTRIAL PARK, you can compare the effects of market volatilities on Everland Public and PINTHONG INDUSTRIAL 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 Everland Public with a short position of PINTHONG INDUSTRIAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everland Public and PINTHONG INDUSTRIAL.
Diversification Opportunities for Everland Public and PINTHONG INDUSTRIAL
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Everland and PINTHONG is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Everland Public and PINTHONG INDUSTRIAL PARK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PINTHONG INDUSTRIAL PARK and Everland Public 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 Everland Public are associated (or correlated) with PINTHONG INDUSTRIAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PINTHONG INDUSTRIAL PARK has no effect on the direction of Everland Public i.e., Everland Public and PINTHONG INDUSTRIAL go up and down completely randomly.
Pair Corralation between Everland Public and PINTHONG INDUSTRIAL
Assuming the 90 days trading horizon Everland Public is expected to generate 1.76 times more return on investment than PINTHONG INDUSTRIAL. However, Everland Public is 1.76 times more volatile than PINTHONG INDUSTRIAL PARK. It trades about 0.09 of its potential returns per unit of risk. PINTHONG INDUSTRIAL PARK is currently generating about 0.07 per unit of risk. If you would invest 12.00 in Everland Public on August 31, 2024 and sell it today you would earn a total of 1.00 from holding Everland Public or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Everland Public vs. PINTHONG INDUSTRIAL PARK
Performance |
| Timeline |
| Everland Public |
| PINTHONG INDUSTRIAL PARK |
Everland Public and PINTHONG INDUSTRIAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everland Public and PINTHONG INDUSTRIAL
The main advantage of trading using opposite Everland Public and PINTHONG INDUSTRIAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everland Public position performs unexpectedly, PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL will offset losses from the drop in PINTHONG INDUSTRIAL's long position.| Everland Public vs. Eastern Star Real | Everland Public vs. Big Camera | Everland Public vs. EMC Public | Everland Public vs. Country Group Development |
| PINTHONG INDUSTRIAL vs. Peace Living PCL | PINTHONG INDUSTRIAL vs. The Platinum Group | PINTHONG INDUSTRIAL vs. Property Perfect Public | PINTHONG INDUSTRIAL vs. Siamese Asset 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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