Correlation Between Gunkul Engineering and TMT Steel
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering and TMT Steel 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 TMT Steel 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 TMT Steel Public, you can compare the effects of market volatilities on Gunkul Engineering and TMT Steel 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 TMT Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and TMT Steel.
Diversification Opportunities for Gunkul Engineering and TMT Steel
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gunkul and TMT is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public and TMT Steel Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TMT Steel 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 TMT Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TMT Steel Public has no effect on the direction of Gunkul Engineering i.e., Gunkul Engineering and TMT Steel go up and down completely randomly.
Pair Corralation between Gunkul Engineering and TMT Steel
Assuming the 90 days trading horizon Gunkul Engineering Public is expected to under-perform the TMT Steel. But the stock apears to be less risky and, when comparing its historical volatility, Gunkul Engineering Public is 22.65 times less risky than TMT Steel. The stock trades about -0.05 of its potential returns per unit of risk. The TMT Steel Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 725.00 in TMT Steel Public on August 24, 2024 and sell it today you would lose (383.00) from holding TMT Steel Public or give up 52.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gunkul Engineering Public vs. TMT Steel Public
Performance |
| Timeline |
| Gunkul Engineering Public |
| TMT Steel Public |
Gunkul Engineering and TMT Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and TMT Steel
The main advantage of trading using opposite Gunkul Engineering and TMT Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering position performs unexpectedly, TMT Steel 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 TMT Steel will offset losses from the drop in TMT Steel'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 |
| TMT Steel vs. PTT Public | TMT Steel vs. PTT Exploration and | TMT Steel vs. The Siam Cement | TMT Steel vs. CP ALL 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |