Correlation Between Gratitude Infinite and Indorama Ventures
Can any of the company-specific risk be diversified away by investing in both Gratitude Infinite and Indorama Ventures 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 Gratitude Infinite and Indorama Ventures into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gratitude Infinite Public and Indorama Ventures PCL, you can compare the effects of market volatilities on Gratitude Infinite and Indorama Ventures 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 Gratitude Infinite with a short position of Indorama Ventures. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gratitude Infinite and Indorama Ventures.
Diversification Opportunities for Gratitude Infinite and Indorama Ventures
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gratitude and Indorama is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gratitude Infinite Public and Indorama Ventures PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indorama Ventures PCL and Gratitude Infinite 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 Gratitude Infinite Public are associated (or correlated) with Indorama Ventures. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indorama Ventures PCL has no effect on the direction of Gratitude Infinite i.e., Gratitude Infinite and Indorama Ventures go up and down completely randomly.
Pair Corralation between Gratitude Infinite and Indorama Ventures
Assuming the 90 days trading horizon Gratitude Infinite Public is expected to under-perform the Indorama Ventures. In addition to that, Gratitude Infinite is 4.38 times more volatile than Indorama Ventures PCL. It trades about -0.18 of its total potential returns per unit of risk. Indorama Ventures PCL is currently generating about 0.12 per unit of volatility. If you would invest 2,533 in Indorama Ventures PCL on September 18, 2024 and sell it today you would earn a total of 92.00 from holding Indorama Ventures PCL or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gratitude Infinite Public vs. Indorama Ventures PCL
Performance |
| Timeline |
| Gratitude Infinite Public |
| Indorama Ventures PCL |
Gratitude Infinite and Indorama Ventures Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gratitude Infinite and Indorama Ventures
The main advantage of trading using opposite Gratitude Infinite and Indorama Ventures positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gratitude Infinite position performs unexpectedly, Indorama Ventures 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 Indorama Ventures will offset losses from the drop in Indorama Ventures' long position.| Gratitude Infinite vs. Tata Steel Public | Gratitude Infinite vs. Thaifoods Group Public | Gratitude Infinite vs. TMT Steel Public |
| Indorama Ventures vs. Thantawan Industry Public | Indorama Ventures vs. The Erawan Group | Indorama Ventures vs. Jay Mart Public | Indorama Ventures vs. Airports of Thailand |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |