Correlation Between Grande Hospitality and Yong Concrete
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By analyzing existing cross correlation between Grande Hospitality Real and Yong Concrete PCL, you can compare the effects of market volatilities on Grande Hospitality and Yong Concrete 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 Grande Hospitality with a short position of Yong Concrete. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Hospitality and Yong Concrete.
Diversification Opportunities for Grande Hospitality and Yong Concrete
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grande and Yong is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Grande Hospitality Real and Yong Concrete PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yong Concrete PCL and Grande Hospitality 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 Grande Hospitality Real are associated (or correlated) with Yong Concrete. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yong Concrete PCL has no effect on the direction of Grande Hospitality i.e., Grande Hospitality and Yong Concrete go up and down completely randomly.
Pair Corralation between Grande Hospitality and Yong Concrete
Assuming the 90 days trading horizon Grande Hospitality Real is expected to generate 0.44 times more return on investment than Yong Concrete. However, Grande Hospitality Real is 2.27 times less risky than Yong Concrete. It trades about -0.06 of its potential returns per unit of risk. Yong Concrete PCL is currently generating about -0.2 per unit of risk. If you would invest 660.00 in Grande Hospitality Real on September 3, 2024 and sell it today you would lose (10.00) from holding Grande Hospitality Real or give up 1.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grande Hospitality Real vs. Yong Concrete PCL
Performance |
| Timeline |
| Grande Hospitality Real |
| Yong Concrete PCL |
Grande Hospitality and Yong Concrete Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grande Hospitality and Yong Concrete
The main advantage of trading using opposite Grande Hospitality and Yong Concrete positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Hospitality position performs unexpectedly, Yong Concrete 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 Yong Concrete will offset losses from the drop in Yong Concrete's long position.| Grande Hospitality vs. Ramkhamhaeng Hospital Public | Grande Hospitality vs. BPS TECHNOLOGY PUBLIC | Grande Hospitality vs. SAF Special Steel | Grande Hospitality vs. S Hotels and |
| Yong Concrete vs. Exotic Food Public | Yong Concrete vs. Knight Club Capital | Yong Concrete vs. North East Rubbers | Yong Concrete vs. Yggdrazil Group 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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