Correlation Between Gunkul Engineering and ONE Enterprise
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering and ONE Enterprise 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 ONE Enterprise 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 The ONE Enterprise, you can compare the effects of market volatilities on Gunkul Engineering and ONE Enterprise 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 ONE Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and ONE Enterprise.
Diversification Opportunities for Gunkul Engineering and ONE Enterprise
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gunkul and ONE is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public and The ONE Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONE Enterprise 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 ONE Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONE Enterprise has no effect on the direction of Gunkul Engineering i.e., Gunkul Engineering and ONE Enterprise go up and down completely randomly.
Pair Corralation between Gunkul Engineering and ONE Enterprise
Assuming the 90 days trading horizon Gunkul Engineering Public is expected to under-perform the ONE Enterprise. In addition to that, Gunkul Engineering is 1.49 times more volatile than The ONE Enterprise. It trades about -0.38 of its total potential returns per unit of risk. The ONE Enterprise is currently generating about -0.17 per unit of volatility. If you would invest 400.00 in The ONE Enterprise on August 24, 2024 and sell it today you would lose (20.00) from holding The ONE Enterprise or give up 5.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gunkul Engineering Public vs. The ONE Enterprise
Performance |
| Timeline |
| Gunkul Engineering Public |
| ONE Enterprise |
Gunkul Engineering and ONE Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and ONE Enterprise
The main advantage of trading using opposite Gunkul Engineering and ONE Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering position performs unexpectedly, ONE Enterprise 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 ONE Enterprise will offset losses from the drop in ONE Enterprise's long position.| Gunkul Engineering vs. Tata Steel Public | Gunkul Engineering vs. Thaifoods Group Public | Gunkul Engineering vs. TMT Steel Public | Gunkul Engineering vs. The Erawan Group |
| ONE Enterprise vs. Major Cineplex Group | ONE Enterprise vs. Yggdrazil Group Public | ONE Enterprise vs. More Return 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.
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