Correlation Between Hydrotek Public and Chewathai Public
Can any of the company-specific risk be diversified away by investing in both Hydrotek Public and Chewathai 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 Hydrotek Public and Chewathai Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hydrotek Public and Chewathai Public, you can compare the effects of market volatilities on Hydrotek Public and Chewathai 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 Hydrotek Public with a short position of Chewathai Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydrotek Public and Chewathai Public.
Diversification Opportunities for Hydrotek Public and Chewathai Public
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hydrotek and Chewathai is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Hydrotek Public and Chewathai Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chewathai Public and Hydrotek Public 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 Hydrotek Public are associated (or correlated) with Chewathai Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chewathai Public has no effect on the direction of Hydrotek Public i.e., Hydrotek Public and Chewathai Public go up and down completely randomly.
Pair Corralation between Hydrotek Public and Chewathai Public
Assuming the 90 days trading horizon Hydrotek Public is expected to under-perform the Chewathai Public. In addition to that, Hydrotek Public is 2.6 times more volatile than Chewathai Public. It trades about -0.17 of its total potential returns per unit of risk. Chewathai Public is currently generating about -0.16 per unit of volatility. If you would invest 49.00 in Chewathai Public on September 1, 2024 and sell it today you would lose (9.00) from holding Chewathai Public or give up 18.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Hydrotek Public vs. Chewathai Public
Performance |
| Timeline |
| Hydrotek Public |
| Chewathai Public |
Hydrotek Public and Chewathai Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hydrotek Public and Chewathai Public
The main advantage of trading using opposite Hydrotek Public and Chewathai Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydrotek Public position performs unexpectedly, Chewathai 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 Chewathai Public will offset losses from the drop in Chewathai Public's long position.| Hydrotek Public vs. Internet Thailand Public | Hydrotek Public vs. Cho Thavee Public | Hydrotek Public vs. E for L | Hydrotek Public vs. Grande Asset Hotels |
| Chewathai Public vs. Cho Thavee Public | Chewathai Public vs. East Coast Furnitech | Chewathai Public vs. Hydrotek Public | Chewathai Public vs. Chularat Hospital 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |