Correlation Between Gunkul Engineering and Mega Lifesciences
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering and Mega Lifesciences 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 Mega Lifesciences 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 Mega Lifesciences Public, you can compare the effects of market volatilities on Gunkul Engineering and Mega Lifesciences 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 Mega Lifesciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and Mega Lifesciences.
Diversification Opportunities for Gunkul Engineering and Mega Lifesciences
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gunkul and Mega is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public and Mega Lifesciences Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mega Lifesciences 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 Mega Lifesciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mega Lifesciences Public has no effect on the direction of Gunkul Engineering i.e., Gunkul Engineering and Mega Lifesciences go up and down completely randomly.
Pair Corralation between Gunkul Engineering and Mega Lifesciences
Assuming the 90 days trading horizon Gunkul Engineering Public is expected to under-perform the Mega Lifesciences. In addition to that, Gunkul Engineering is 1.38 times more volatile than Mega Lifesciences Public. It trades about -0.03 of its total potential returns per unit of risk. Mega Lifesciences Public is currently generating about -0.01 per unit of volatility. If you would invest 3,886 in Mega Lifesciences Public on August 31, 2024 and sell it today you would lose (361.00) from holding Mega Lifesciences Public or give up 9.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gunkul Engineering Public vs. Mega Lifesciences Public
Performance |
| Timeline |
| Gunkul Engineering Public |
| Mega Lifesciences Public |
Gunkul Engineering and Mega Lifesciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and Mega Lifesciences
The main advantage of trading using opposite Gunkul Engineering and Mega Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering position performs unexpectedly, Mega Lifesciences 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 Mega Lifesciences will offset losses from the drop in Mega Lifesciences' 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 |
| Mega Lifesciences vs. AP Public | Mega Lifesciences vs. Advanced Information Technology | Mega Lifesciences vs. AJ Plast Public | Mega Lifesciences vs. Berli Jucker 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |