Correlation Between Getabec Public and Global Service
Can any of the company-specific risk be diversified away by investing in both Getabec Public and Global Service 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 Getabec Public and Global Service into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Getabec Public and Global Service Center, you can compare the effects of market volatilities on Getabec Public and Global Service 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 Getabec Public with a short position of Global Service. Check out your portfolio center. Please also check ongoing floating volatility patterns of Getabec Public and Global Service.
Diversification Opportunities for Getabec Public and Global Service
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Getabec and Global is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Getabec Public and Global Service Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Service Center and Getabec 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 Getabec Public are associated (or correlated) with Global Service. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Service Center has no effect on the direction of Getabec Public i.e., Getabec Public and Global Service go up and down completely randomly.
Pair Corralation between Getabec Public and Global Service
Assuming the 90 days trading horizon Getabec Public is expected to generate 7.09 times less return on investment than Global Service. But when comparing it to its historical volatility, Getabec Public is 3.98 times less risky than Global Service. It trades about 0.01 of its potential returns per unit of risk. Global Service Center is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 61.00 in Global Service Center on August 28, 2024 and sell it today you would lose (2.00) from holding Global Service Center or give up 3.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Getabec Public vs. Global Service Center
Performance |
| Timeline |
| Getabec Public |
| Global Service Center |
Getabec Public and Global Service Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Getabec Public and Global Service
The main advantage of trading using opposite Getabec Public and Global Service positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Getabec Public position performs unexpectedly, Global Service 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 Global Service will offset losses from the drop in Global Service's long position.| Getabec Public vs. Kulthorn Kirby Public | Getabec Public vs. The Erawan Group | Getabec Public vs. Airports of Thailand | Getabec Public vs. Eastern Technical Engineering |
| Global Service vs. Com7 PCL | Global Service vs. TKS Technologies Public | Global Service vs. Rajthanee Hospital Public | Global Service vs. The Erawan Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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