Correlation Between G Capital and Chewathai Public
Can any of the company-specific risk be diversified away by investing in both G Capital and Chewathai Public 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 Chewathai Public 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 Chewathai Public, you can compare the effects of market volatilities on G Capital and Chewathai Public 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 Chewathai Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Capital and Chewathai Public.
Diversification Opportunities for G Capital and Chewathai Public
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between GCAP and Chewathai is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding G Capital Public and Chewathai Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chewathai 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 Chewathai Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chewathai Public has no effect on the direction of G Capital i.e., G Capital and Chewathai Public go up and down completely randomly.
Pair Corralation between G Capital and Chewathai Public
Assuming the 90 days trading horizon G Capital is expected to generate 1.07 times less return on investment than Chewathai Public. In addition to that, G Capital is 1.0 times more volatile than Chewathai Public. It trades about 0.04 of its total potential returns per unit of risk. Chewathai Public is currently generating about 0.04 per unit of volatility. If you would invest 71.00 in Chewathai Public on November 19, 2024 and sell it today you would lose (42.00) from holding Chewathai Public or give up 59.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
G Capital Public vs. Chewathai Public
Performance |
| Timeline |
| G Capital Public |
| Chewathai Public |
G Capital and Chewathai Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Capital and Chewathai Public
The main advantage of trading using opposite G Capital and Chewathai Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Capital position performs unexpectedly, Chewathai Public 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 Chewathai Public will offset losses from the drop in Chewathai Public'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 |
| Chewathai Public vs. Cho Thavee Public | Chewathai Public vs. East Coast Furnitech | Chewathai Public vs. Hydrotek Public | Chewathai Public vs. Chularat Hospital 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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