Correlation Between Fine Metal and Rojana Industrial
Can any of the company-specific risk be diversified away by investing in both Fine Metal and Rojana 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 Fine Metal and Rojana Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fine Metal Technologies and Rojana Industrial Park, you can compare the effects of market volatilities on Fine Metal and Rojana 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 Fine Metal with a short position of Rojana Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Metal and Rojana Industrial.
Diversification Opportunities for Fine Metal and Rojana Industrial
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fine and Rojana is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Fine Metal Technologies and Rojana Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rojana Industrial Park and Fine Metal 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 Fine Metal Technologies are associated (or correlated) with Rojana Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rojana Industrial Park has no effect on the direction of Fine Metal i.e., Fine Metal and Rojana Industrial go up and down completely randomly.
Pair Corralation between Fine Metal and Rojana Industrial
Assuming the 90 days trading horizon Fine Metal Technologies is expected to generate 21.06 times more return on investment than Rojana Industrial. However, Fine Metal is 21.06 times more volatile than Rojana Industrial Park. It trades about 0.04 of its potential returns per unit of risk. Rojana Industrial Park is currently generating about 0.02 per unit of risk. If you would invest 2,664 in Fine Metal Technologies on September 13, 2024 and sell it today you would earn a total of 586.00 from holding Fine Metal Technologies or generate 22.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fine Metal Technologies vs. Rojana Industrial Park
Performance |
| Timeline |
| Fine Metal Technologies |
| Rojana Industrial Park |
Fine Metal and Rojana Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fine Metal and Rojana Industrial
The main advantage of trading using opposite Fine Metal and Rojana Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Metal position performs unexpectedly, Rojana 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 Rojana Industrial will offset losses from the drop in Rojana Industrial's long position.| Fine Metal vs. Tata Steel Public | Fine Metal vs. TTCL Public | Fine Metal vs. Thaifoods Group Public | Fine Metal vs. TMT Steel Public |
| Rojana Industrial vs. Lohakit Metal Public | Rojana Industrial vs. PTT OIL RETAIL | Rojana Industrial vs. Premier Marketing Public | Rojana Industrial vs. Sri panwa Hospitality |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |