Correlation Between Ichitan Group and Global Green
Can any of the company-specific risk be diversified away by investing in both Ichitan Group and Global Green 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 Ichitan Group and Global Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ichitan Group Public and Global Green Chemicals, you can compare the effects of market volatilities on Ichitan Group and Global Green 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 Ichitan Group with a short position of Global Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ichitan Group and Global Green.
Diversification Opportunities for Ichitan Group and Global Green
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ichitan and Global is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ichitan Group Public and Global Green Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Green Chemicals and Ichitan Group 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 Ichitan Group Public are associated (or correlated) with Global Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Green Chemicals has no effect on the direction of Ichitan Group i.e., Ichitan Group and Global Green go up and down completely randomly.
Pair Corralation between Ichitan Group and Global Green
Assuming the 90 days trading horizon Ichitan Group Public is expected to under-perform the Global Green. But the stock apears to be less risky and, when comparing its historical volatility, Ichitan Group Public is 1.13 times less risky than Global Green. The stock trades about -0.07 of its potential returns per unit of risk. The Global Green Chemicals is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 464.00 in Global Green Chemicals on September 4, 2024 and sell it today you would lose (2.00) from holding Global Green Chemicals or give up 0.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ichitan Group Public vs. Global Green Chemicals
Performance |
| Timeline |
| Ichitan Group Public |
| Global Green Chemicals |
Ichitan Group and Global Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ichitan Group and Global Green
The main advantage of trading using opposite Ichitan Group and Global Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ichitan Group position performs unexpectedly, Global Green 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 Global Green will offset losses from the drop in Global Green's long position.| Ichitan Group vs. Airports of Thailand | Ichitan Group vs. PTT Public | Ichitan Group vs. Bangkok Dusit Medical | Ichitan Group vs. Kasikornbank Public |
| Global Green vs. PTT Public | Global Green vs. PTT Exploration and | Global Green vs. The Siam Cement | Global Green 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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