Correlation Between Hwa Fong and Getabec Public
Can any of the company-specific risk be diversified away by investing in both Hwa Fong and Getabec Public 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 Hwa Fong and Getabec Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hwa Fong Rubber and Getabec Public, you can compare the effects of market volatilities on Hwa Fong and Getabec Public 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 Hwa Fong with a short position of Getabec Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hwa Fong and Getabec Public.
Diversification Opportunities for Hwa Fong and Getabec Public
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hwa and Getabec is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hwa Fong Rubber and Getabec Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getabec Public and Hwa Fong 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 Hwa Fong Rubber are associated (or correlated) with Getabec Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getabec Public has no effect on the direction of Hwa Fong i.e., Hwa Fong and Getabec Public go up and down completely randomly.
Pair Corralation between Hwa Fong and Getabec Public
Assuming the 90 days trading horizon Hwa Fong Rubber is expected to under-perform the Getabec Public. But the stock apears to be less risky and, when comparing its historical volatility, Hwa Fong Rubber is 1.86 times less risky than Getabec Public. The stock trades about -0.26 of its potential returns per unit of risk. The Getabec Public is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 79.00 in Getabec Public on August 28, 2024 and sell it today you would lose (8.00) from holding Getabec Public or give up 10.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hwa Fong Rubber vs. Getabec Public
Performance |
| Timeline |
| Hwa Fong Rubber |
| Getabec Public |
Hwa Fong and Getabec Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hwa Fong and Getabec Public
The main advantage of trading using opposite Hwa Fong and Getabec Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hwa Fong position performs unexpectedly, Getabec Public 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 Getabec Public will offset losses from the drop in Getabec Public's long position.| Hwa Fong vs. SCB X Public | Hwa Fong vs. Kasikornbank Public | Hwa Fong vs. PTT Public | Hwa Fong vs. Kasikornbank Public |
| Getabec Public vs. Kulthorn Kirby Public | Getabec Public vs. The Erawan Group | Getabec Public vs. Airports of Thailand | Getabec Public 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |