Correlation Between G Capital and Arinsiri Land
Can any of the company-specific risk be diversified away by investing in both G Capital and Arinsiri Land 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 G Capital and Arinsiri Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Capital Public and Arinsiri Land Public, you can compare the effects of market volatilities on G Capital and Arinsiri Land 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 G Capital with a short position of Arinsiri Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Capital and Arinsiri Land.
Diversification Opportunities for G Capital and Arinsiri Land
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GCAP and Arinsiri is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding G Capital Public and Arinsiri Land Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arinsiri Land Public and G Capital 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 G Capital Public are associated (or correlated) with Arinsiri Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arinsiri Land Public has no effect on the direction of G Capital i.e., G Capital and Arinsiri Land go up and down completely randomly.
Pair Corralation between G Capital and Arinsiri Land
Assuming the 90 days trading horizon G Capital Public is expected to generate 1.0 times more return on investment than Arinsiri Land. However, G Capital Public is 1.0 times less risky than Arinsiri Land. It trades about 0.04 of its potential returns per unit of risk. Arinsiri Land Public is currently generating about 0.04 per unit of risk. If you would invest 124.00 in G Capital Public on August 31, 2024 and sell it today you would lose (87.00) from holding G Capital Public or give up 70.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.78% |
| Values | Daily Returns |
G Capital Public vs. Arinsiri Land Public
Performance |
| Timeline |
| G Capital Public |
| Arinsiri Land Public |
G Capital and Arinsiri Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Capital and Arinsiri Land
The main advantage of trading using opposite G Capital and Arinsiri Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Capital position performs unexpectedly, Arinsiri Land 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 Arinsiri Land will offset losses from the drop in Arinsiri Land's long position.| G Capital vs. East Coast Furnitech | G Capital vs. Filter Vision Public | G Capital vs. Cho Thavee Public | G Capital vs. Akkhie Prakarn Public |
| Arinsiri Land vs. ARIP Public | Arinsiri Land vs. ATP 30 Public | Arinsiri Land vs. G Capital Public | Arinsiri Land vs. E for L |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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