Correlation Between GFPT Public and Buriram Sugar
Can any of the company-specific risk be diversified away by investing in both GFPT Public and Buriram Sugar 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 GFPT Public and Buriram Sugar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GFPT Public and Buriram Sugar Public, you can compare the effects of market volatilities on GFPT Public and Buriram Sugar 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 GFPT Public with a short position of Buriram Sugar. Check out your portfolio center. Please also check ongoing floating volatility patterns of GFPT Public and Buriram Sugar.
Diversification Opportunities for GFPT Public and Buriram Sugar
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between GFPT and Buriram is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding GFPT Public and Buriram Sugar Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Buriram Sugar Public and GFPT Public 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 GFPT Public are associated (or correlated) with Buriram Sugar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Buriram Sugar Public has no effect on the direction of GFPT Public i.e., GFPT Public and Buriram Sugar go up and down completely randomly.
Pair Corralation between GFPT Public and Buriram Sugar
Assuming the 90 days trading horizon GFPT Public is expected to under-perform the Buriram Sugar. But the stock apears to be less risky and, when comparing its historical volatility, GFPT Public is 25.67 times less risky than Buriram Sugar. The stock trades about -0.01 of its potential returns per unit of risk. The Buriram Sugar Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 696.00 in Buriram Sugar Public on August 31, 2024 and sell it today you would lose (218.00) from holding Buriram Sugar Public or give up 31.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GFPT Public vs. Buriram Sugar Public
Performance |
| Timeline |
| GFPT Public |
| Buriram Sugar Public |
GFPT Public and Buriram Sugar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GFPT Public and Buriram Sugar
The main advantage of trading using opposite GFPT Public and Buriram Sugar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GFPT Public position performs unexpectedly, Buriram Sugar 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 Buriram Sugar will offset losses from the drop in Buriram Sugar's long position.| GFPT Public vs. MK Restaurant Group | GFPT Public vs. TRC Construction Public | GFPT Public vs. Bangkok Expressway and | GFPT Public vs. Lohakit Metal Public |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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