Correlation Between Gunkul Engineering and Lohakit Metal
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering and Lohakit Metal 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 Lohakit Metal 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 Lohakit Metal Public, you can compare the effects of market volatilities on Gunkul Engineering and Lohakit Metal 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 Lohakit Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and Lohakit Metal.
Diversification Opportunities for Gunkul Engineering and Lohakit Metal
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gunkul and Lohakit is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public and Lohakit Metal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lohakit Metal 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 Lohakit Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lohakit Metal Public has no effect on the direction of Gunkul Engineering i.e., Gunkul Engineering and Lohakit Metal go up and down completely randomly.
Pair Corralation between Gunkul Engineering and Lohakit Metal
Assuming the 90 days trading horizon Gunkul Engineering Public is expected to under-perform the Lohakit Metal. In addition to that, Gunkul Engineering is 3.18 times more volatile than Lohakit Metal Public. It trades about -0.31 of its total potential returns per unit of risk. Lohakit Metal Public is currently generating about 0.04 per unit of volatility. If you would invest 374.00 in Lohakit Metal Public on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Lohakit Metal Public or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gunkul Engineering Public vs. Lohakit Metal Public
Performance |
| Timeline |
| Gunkul Engineering Public |
| Lohakit Metal Public |
Gunkul Engineering and Lohakit Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and Lohakit Metal
The main advantage of trading using opposite Gunkul Engineering and Lohakit Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering position performs unexpectedly, Lohakit Metal 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 Lohakit Metal will offset losses from the drop in Lohakit Metal'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 |
| Lohakit Metal vs. Gulf Energy Development | Lohakit Metal vs. Energy Absolute Public | Lohakit Metal vs. WHA Public | Lohakit Metal vs. Bangkok Expressway and |
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.
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