Correlation Between Gunkul Engineering and Haad Thip
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering and Haad Thip 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 Haad Thip 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 Haad Thip Public, you can compare the effects of market volatilities on Gunkul Engineering and Haad Thip 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 Haad Thip. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and Haad Thip.
Diversification Opportunities for Gunkul Engineering and Haad Thip
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gunkul and Haad is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public and Haad Thip Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haad Thip 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 Haad Thip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haad Thip Public has no effect on the direction of Gunkul Engineering i.e., Gunkul Engineering and Haad Thip go up and down completely randomly.
Pair Corralation between Gunkul Engineering and Haad Thip
Assuming the 90 days trading horizon Gunkul Engineering Public is expected to under-perform the Haad Thip. In addition to that, Gunkul Engineering is 1.27 times more volatile than Haad Thip Public. It trades about -0.22 of its total potential returns per unit of risk. Haad Thip Public is currently generating about -0.14 per unit of volatility. If you would invest 1,670 in Haad Thip Public on September 14, 2024 and sell it today you would lose (70.00) from holding Haad Thip Public or give up 4.19% 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. Haad Thip Public
Performance |
| Timeline |
| Gunkul Engineering Public |
| Haad Thip Public |
Gunkul Engineering and Haad Thip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and Haad Thip
The main advantage of trading using opposite Gunkul Engineering and Haad Thip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering position performs unexpectedly, Haad Thip 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 Haad Thip will offset losses from the drop in Haad Thip'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 |
| Haad Thip vs. Charoen Pokphand Foods | Haad Thip vs. Carabao Group Public | Haad Thip vs. Home Product Center | Haad Thip vs. Ichitan Group 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 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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