Correlation Between Gunkul Engineering and Demco Public
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering and Demco Public 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 Gunkul Engineering and Demco Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gunkul Engineering Public and Demco Public, you can compare the effects of market volatilities on Gunkul Engineering and Demco Public 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 Gunkul Engineering with a short position of Demco Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and Demco Public.
Diversification Opportunities for Gunkul Engineering and Demco Public
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gunkul and Demco is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public and Demco Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Demco Public and Gunkul Engineering 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 Gunkul Engineering Public are associated (or correlated) with Demco Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Demco Public has no effect on the direction of Gunkul Engineering i.e., Gunkul Engineering and Demco Public go up and down completely randomly.
Pair Corralation between Gunkul Engineering and Demco Public
Assuming the 90 days trading horizon Gunkul Engineering is expected to generate 458.74 times less return on investment than Demco Public. But when comparing it to its historical volatility, Gunkul Engineering Public is 50.47 times less risky than Demco Public. It trades about 0.01 of its potential returns per unit of risk. Demco Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 364.00 in Demco Public on August 26, 2024 and sell it today you would lose (26.00) from holding Demco Public or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gunkul Engineering Public vs. Demco Public
Performance |
| Timeline |
| Gunkul Engineering Public |
| Demco Public |
Gunkul Engineering and Demco Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and Demco Public
The main advantage of trading using opposite Gunkul Engineering and Demco Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering position performs unexpectedly, Demco Public 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 Demco Public will offset losses from the drop in Demco Public's long position.| Gunkul Engineering vs. Gulf Energy Development | Gunkul Engineering vs. Energy Absolute Public | Gunkul Engineering vs. Banpu Public | Gunkul Engineering vs. WHA Public |
| Demco Public vs. Tata Steel Public | Demco Public vs. Thaifoods Group Public | Demco Public vs. TMT Steel Public | Demco Public 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |