Correlation Between Gunkul Engineering and Thai Mitsuwa
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering and Thai Mitsuwa 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 Thai Mitsuwa 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 Thai Mitsuwa Public, you can compare the effects of market volatilities on Gunkul Engineering and Thai Mitsuwa 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 Thai Mitsuwa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and Thai Mitsuwa.
Diversification Opportunities for Gunkul Engineering and Thai Mitsuwa
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Gunkul and Thai is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public and Thai Mitsuwa Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Mitsuwa 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 Thai Mitsuwa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Mitsuwa Public has no effect on the direction of Gunkul Engineering i.e., Gunkul Engineering and Thai Mitsuwa go up and down completely randomly.
Pair Corralation between Gunkul Engineering and Thai Mitsuwa
Assuming the 90 days trading horizon Gunkul Engineering Public is expected to under-perform the Thai Mitsuwa. But the stock apears to be less risky and, when comparing its historical volatility, Gunkul Engineering Public is 31.98 times less risky than Thai Mitsuwa. The stock trades about -0.01 of its potential returns per unit of risk. The Thai Mitsuwa Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 5,331 in Thai Mitsuwa Public on September 1, 2024 and sell it today you would earn a total of 919.00 from holding Thai Mitsuwa Public or generate 17.24% 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. Thai Mitsuwa Public
Performance |
| Timeline |
| Gunkul Engineering Public |
| Thai Mitsuwa Public |
Gunkul Engineering and Thai Mitsuwa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and Thai Mitsuwa
The main advantage of trading using opposite Gunkul Engineering and Thai Mitsuwa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering position performs unexpectedly, Thai Mitsuwa 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 Thai Mitsuwa will offset losses from the drop in Thai Mitsuwa'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 |
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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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