Correlation Between Lohakit Metal and Big Camera
Can any of the company-specific risk be diversified away by investing in both Lohakit Metal and Big Camera 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 Lohakit Metal and Big Camera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lohakit Metal Public and Big Camera, you can compare the effects of market volatilities on Lohakit Metal and Big Camera 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 Lohakit Metal with a short position of Big Camera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohakit Metal and Big Camera.
Diversification Opportunities for Lohakit Metal and Big Camera
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lohakit and Big is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Lohakit Metal Public and Big Camera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Camera and Lohakit Metal 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 Lohakit Metal Public are associated (or correlated) with Big Camera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Camera has no effect on the direction of Lohakit Metal i.e., Lohakit Metal and Big Camera go up and down completely randomly.
Pair Corralation between Lohakit Metal and Big Camera
Assuming the 90 days trading horizon Lohakit Metal Public is expected to generate 0.21 times more return on investment than Big Camera. However, Lohakit Metal Public is 4.78 times less risky than Big Camera. It trades about 0.04 of its potential returns per unit of risk. Big Camera is currently generating about -0.24 per unit of risk. If you would invest 374.00 in Lohakit Metal Public on September 3, 2024 and sell it today you would earn a total of 2.00 from holding Lohakit Metal Public or generate 0.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lohakit Metal Public vs. Big Camera
Performance |
| Timeline |
| Lohakit Metal Public |
| Big Camera |
Lohakit Metal and Big Camera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohakit Metal and Big Camera
The main advantage of trading using opposite Lohakit Metal and Big Camera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohakit Metal position performs unexpectedly, Big Camera 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 Big Camera will offset losses from the drop in Big Camera's long position.| Lohakit Metal vs. Asia Aviation Public | Lohakit Metal vs. Bangkok Dusit Medical | Lohakit Metal vs. Bangkok Expressway and | Lohakit Metal vs. Airports of Thailand |
| Big Camera vs. Central Pattana Public | Big Camera vs. CP ALL Public | Big Camera vs. Bangkok Dusit Medical | Big Camera vs. Airports of Thailand |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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