Correlation Between Gunkul Engineering and Moong Pattana
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering and Moong Pattana 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 Moong Pattana 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 Moong Pattana International, you can compare the effects of market volatilities on Gunkul Engineering and Moong Pattana 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 Moong Pattana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and Moong Pattana.
Diversification Opportunities for Gunkul Engineering and Moong Pattana
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gunkul and Moong is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public and Moong Pattana International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Moong Pattana Intern 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 Moong Pattana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Moong Pattana Intern has no effect on the direction of Gunkul Engineering i.e., Gunkul Engineering and Moong Pattana go up and down completely randomly.
Pair Corralation between Gunkul Engineering and Moong Pattana
Assuming the 90 days trading horizon Gunkul Engineering Public is expected to under-perform the Moong Pattana. But the stock apears to be less risky and, when comparing its historical volatility, Gunkul Engineering Public is 31.89 times less risky than Moong Pattana. The stock trades about -0.01 of its potential returns per unit of risk. The Moong Pattana International is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 207.00 in Moong Pattana International on September 1, 2024 and sell it today you would earn a total of 7.00 from holding Moong Pattana International or generate 3.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.45% |
| Values | Daily Returns |
Gunkul Engineering Public vs. Moong Pattana International
Performance |
| Timeline |
| Gunkul Engineering Public |
| Moong Pattana Intern |
Gunkul Engineering and Moong Pattana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and Moong Pattana
The main advantage of trading using opposite Gunkul Engineering and Moong Pattana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering position performs unexpectedly, Moong Pattana 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 Moong Pattana will offset losses from the drop in Moong Pattana'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 |
| Moong Pattana vs. Metro Systems | Moong Pattana vs. Mega Lifesciences Public | Moong Pattana vs. Hana Microelectronics Public | Moong Pattana vs. Karmarts 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |