Correlation Between Gunkul Engineering and Gulf Energy
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering and Gulf Energy 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 Gulf Energy 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 Gulf Energy Development, you can compare the effects of market volatilities on Gunkul Engineering and Gulf Energy 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 Gulf Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and Gulf Energy.
Diversification Opportunities for Gunkul Engineering and Gulf Energy
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Gunkul and Gulf is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public and Gulf Energy Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gulf Energy Development 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 Gulf Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gulf Energy Development has no effect on the direction of Gunkul Engineering i.e., Gunkul Engineering and Gulf Energy go up and down completely randomly.
Pair Corralation between Gunkul Engineering and Gulf Energy
Assuming the 90 days trading horizon Gunkul Engineering Public is expected to under-perform the Gulf Energy. In addition to that, Gunkul Engineering is 1.41 times more volatile than Gulf Energy Development. It trades about -0.03 of its total potential returns per unit of risk. Gulf Energy Development is currently generating about 0.06 per unit of volatility. If you would invest 4,534 in Gulf Energy Development on September 2, 2024 and sell it today you would earn a total of 1,516 from holding Gulf Energy Development or generate 33.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gunkul Engineering Public vs. Gulf Energy Development
Performance |
| Timeline |
| Gunkul Engineering Public |
| Gulf Energy Development |
Gunkul Engineering and Gulf Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and Gulf Energy
The main advantage of trading using opposite Gunkul Engineering and Gulf Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering position performs unexpectedly, Gulf Energy 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 Gulf Energy will offset losses from the drop in Gulf Energy's long position.| Gunkul Engineering vs. Gulf Energy Development | Gunkul Engineering vs. Energy Absolute Public | Gunkul Engineering vs. WHA Public | Gunkul Engineering vs. Bangkok Expressway and |
| Gulf Energy vs. Energy Absolute Public | Gulf Energy vs. BGrimm Power Public | Gulf Energy vs. Global Power Synergy | Gulf Energy vs. CP ALL 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |