Correlation Between Gunkul Engineering and Premier Technology
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering and Premier Technology 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 Premier Technology 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 Premier Technology Public, you can compare the effects of market volatilities on Gunkul Engineering and Premier Technology 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 Premier Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and Premier Technology.
Diversification Opportunities for Gunkul Engineering and Premier Technology
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gunkul and Premier is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public and Premier Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Technology 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 Premier Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Technology Public has no effect on the direction of Gunkul Engineering i.e., Gunkul Engineering and Premier Technology go up and down completely randomly.
Pair Corralation between Gunkul Engineering and Premier Technology
Assuming the 90 days trading horizon Gunkul Engineering Public is expected to under-perform the Premier Technology. In addition to that, Gunkul Engineering is 2.65 times more volatile than Premier Technology Public. It trades about -0.33 of its total potential returns per unit of risk. Premier Technology Public is currently generating about 0.09 per unit of volatility. If you would invest 955.00 in Premier Technology Public on August 29, 2024 and sell it today you would earn a total of 15.00 from holding Premier Technology Public or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gunkul Engineering Public vs. Premier Technology Public
Performance |
| Timeline |
| Gunkul Engineering Public |
| Premier Technology Public |
Gunkul Engineering and Premier Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and Premier Technology
The main advantage of trading using opposite Gunkul Engineering and Premier Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering position performs unexpectedly, Premier Technology 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 Premier Technology will offset losses from the drop in Premier Technology's long position.| Gunkul Engineering vs. MCS Steel Public | Gunkul Engineering vs. Asia Plus Group | Gunkul Engineering vs. Lalin Property Public | Gunkul Engineering vs. Lam Soon Public |
| Premier Technology vs. Thanachart Capital Public | Premier Technology vs. Quality Houses Public | Premier Technology vs. Tipco Asphalt Public | Premier Technology vs. Synnex 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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