Correlation Between Gunkul Engineering and Sabuy Technology
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering and Sabuy 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 Sabuy 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 Sabuy Technology Public, you can compare the effects of market volatilities on Gunkul Engineering and Sabuy 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 Sabuy Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and Sabuy Technology.
Diversification Opportunities for Gunkul Engineering and Sabuy Technology
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gunkul and Sabuy is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public and Sabuy Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabuy 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 Sabuy Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabuy Technology Public has no effect on the direction of Gunkul Engineering i.e., Gunkul Engineering and Sabuy Technology go up and down completely randomly.
Pair Corralation between Gunkul Engineering and Sabuy Technology
Assuming the 90 days trading horizon Gunkul Engineering Public is expected to generate 0.44 times more return on investment than Sabuy Technology. However, Gunkul Engineering Public is 2.27 times less risky than Sabuy Technology. It trades about -0.34 of its potential returns per unit of risk. Sabuy Technology Public is currently generating about -0.48 per unit of risk. If you would invest 276.00 in Gunkul Engineering Public on August 29, 2024 and sell it today you would lose (42.00) from holding Gunkul Engineering Public or give up 15.22% 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. Sabuy Technology Public
Performance |
| Timeline |
| Gunkul Engineering Public |
| Sabuy Technology Public |
Gunkul Engineering and Sabuy Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and Sabuy Technology
The main advantage of trading using opposite Gunkul Engineering and Sabuy Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering position performs unexpectedly, Sabuy 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 Sabuy Technology will offset losses from the drop in Sabuy Technology'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 |
| Sabuy Technology vs. Kulthorn Kirby Public | Sabuy Technology vs. The Erawan Group | Sabuy Technology vs. Airports of Thailand | Sabuy Technology vs. Eastern Technical Engineering |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |