Correlation Between Lohakit Metal and OCC Public
Can any of the company-specific risk be diversified away by investing in both Lohakit Metal and OCC 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 Lohakit Metal and OCC Public 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 OCC Public, you can compare the effects of market volatilities on Lohakit Metal and OCC 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 Lohakit Metal with a short position of OCC Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohakit Metal and OCC Public.
Diversification Opportunities for Lohakit Metal and OCC Public
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lohakit and OCC is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lohakit Metal Public and OCC Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OCC Public 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 OCC Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OCC Public has no effect on the direction of Lohakit Metal i.e., Lohakit Metal and OCC Public go up and down completely randomly.
Pair Corralation between Lohakit Metal and OCC Public
Assuming the 90 days trading horizon Lohakit Metal Public is expected to under-perform the OCC Public. But the stock apears to be less risky and, when comparing its historical volatility, Lohakit Metal Public is 43.49 times less risky than OCC Public. The stock trades about -0.03 of its potential returns per unit of risk. The OCC Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,038 in OCC Public on September 3, 2024 and sell it today you would lose (138.00) from holding OCC Public or give up 13.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.57% |
| Values | Daily Returns |
Lohakit Metal Public vs. OCC Public
Performance |
| Timeline |
| Lohakit Metal Public |
| OCC Public |
Lohakit Metal and OCC Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohakit Metal and OCC Public
The main advantage of trading using opposite Lohakit Metal and OCC Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohakit Metal position performs unexpectedly, OCC 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 OCC Public will offset losses from the drop in OCC Public'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 |
| OCC Public vs. Central Pattana Public | OCC Public vs. CP ALL Public | OCC Public vs. Bangkok Dusit Medical | OCC Public 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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