Correlation Between Grande Asset and Twenty Four
Can any of the company-specific risk be diversified away by investing in both Grande Asset and Twenty Four 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 Grande Asset and Twenty Four into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grande Asset Hotels and Twenty Four Con Supply, you can compare the effects of market volatilities on Grande Asset and Twenty Four 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 Grande Asset with a short position of Twenty Four. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Asset and Twenty Four.
Diversification Opportunities for Grande Asset and Twenty Four
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grande and Twenty is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Grande Asset Hotels and Twenty Four Con Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Twenty Four Con and Grande Asset 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 Grande Asset Hotels are associated (or correlated) with Twenty Four. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Twenty Four Con has no effect on the direction of Grande Asset i.e., Grande Asset and Twenty Four go up and down completely randomly.
Pair Corralation between Grande Asset and Twenty Four
Assuming the 90 days trading horizon Grande Asset Hotels is expected to generate 2.8 times more return on investment than Twenty Four. However, Grande Asset is 2.8 times more volatile than Twenty Four Con Supply. It trades about -0.1 of its potential returns per unit of risk. Twenty Four Con Supply is currently generating about -0.3 per unit of risk. If you would invest 11.00 in Grande Asset Hotels on August 29, 2024 and sell it today you would lose (2.00) from holding Grande Asset Hotels or give up 18.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Grande Asset Hotels vs. Twenty Four Con Supply
Performance |
| Timeline |
| Grande Asset Hotels |
| Twenty Four Con |
Grande Asset and Twenty Four Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grande Asset and Twenty Four
The main advantage of trading using opposite Grande Asset and Twenty Four positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Asset position performs unexpectedly, Twenty Four 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 Twenty Four will offset losses from the drop in Twenty Four's long position.| Grande Asset vs. CP ALL Public | Grande Asset vs. Bangkok Dusit Medical | Grande Asset vs. Central Pattana Public | Grande Asset vs. Advanced Info Service |
| Twenty Four vs. Akkhie Prakarn Public | Twenty Four vs. Absolute Clean Energy | Twenty Four vs. Sabuy Technology Public | Twenty Four vs. Ananda Development 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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