Correlation Between General Environmental and Thai OPP
Can any of the company-specific risk be diversified away by investing in both General Environmental and Thai OPP 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 General Environmental and Thai OPP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Environmental Conservation and Thai OPP Public, you can compare the effects of market volatilities on General Environmental and Thai OPP 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 General Environmental with a short position of Thai OPP. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Environmental and Thai OPP.
Diversification Opportunities for General Environmental and Thai OPP
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between General and Thai is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding General Environmental Conserva and Thai OPP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai OPP Public and General Environmental 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 General Environmental Conservation are associated (or correlated) with Thai OPP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai OPP Public has no effect on the direction of General Environmental i.e., General Environmental and Thai OPP go up and down completely randomly.
Pair Corralation between General Environmental and Thai OPP
Assuming the 90 days trading horizon General Environmental is expected to generate 1.04 times less return on investment than Thai OPP. But when comparing it to its historical volatility, General Environmental Conservation is 1.0 times less risky than Thai OPP. It trades about 0.06 of its potential returns per unit of risk. Thai OPP Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 15,358 in Thai OPP Public on September 12, 2024 and sell it today you would earn a total of 1,342 from holding Thai OPP Public or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.17% |
| Values | Daily Returns |
General Environmental Conserva vs. Thai OPP Public
Performance |
| Timeline |
| General Environmental |
| Thai OPP Public |
General Environmental and Thai OPP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Environmental and Thai OPP
The main advantage of trading using opposite General Environmental and Thai OPP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Environmental position performs unexpectedly, Thai OPP 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 Thai OPP will offset losses from the drop in Thai OPP's long position.| General Environmental vs. Better World Green | General Environmental vs. Dcon Products Public | General Environmental vs. The Erawan Group | General Environmental vs. Dynasty Ceramic Public |
| Thai OPP vs. SAF Special Steel | Thai OPP vs. Kasikornbank Public | Thai OPP vs. Chow Steel Industries | Thai OPP vs. General Environmental Conservation |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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