Correlation Between Lohakit Metal and Rojana Industrial
Can any of the company-specific risk be diversified away by investing in both Lohakit Metal and Rojana Industrial 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 Rojana Industrial 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 Rojana Industrial Park, you can compare the effects of market volatilities on Lohakit Metal and Rojana Industrial 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 Rojana Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohakit Metal and Rojana Industrial.
Diversification Opportunities for Lohakit Metal and Rojana Industrial
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Lohakit and Rojana is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Lohakit Metal Public and Rojana Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rojana Industrial Park 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 Rojana Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rojana Industrial Park has no effect on the direction of Lohakit Metal i.e., Lohakit Metal and Rojana Industrial go up and down completely randomly.
Pair Corralation between Lohakit Metal and Rojana Industrial
Assuming the 90 days trading horizon Lohakit Metal Public is expected to under-perform the Rojana Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Lohakit Metal Public is 2.05 times less risky than Rojana Industrial. The stock trades about -0.02 of its potential returns per unit of risk. The Rojana Industrial Park is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 587.00 in Rojana Industrial Park on September 12, 2024 and sell it today you would earn a total of 48.00 from holding Rojana Industrial Park or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lohakit Metal Public vs. Rojana Industrial Park
Performance |
| Timeline |
| Lohakit Metal Public |
| Rojana Industrial Park |
Lohakit Metal and Rojana Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohakit Metal and Rojana Industrial
The main advantage of trading using opposite Lohakit Metal and Rojana Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohakit Metal position performs unexpectedly, Rojana Industrial 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 Rojana Industrial will offset losses from the drop in Rojana Industrial's long position.| Lohakit Metal vs. Tata Steel Public | Lohakit Metal vs. TTCL Public | Lohakit Metal vs. Thaifoods Group Public | Lohakit Metal vs. TMT Steel Public |
| Rojana Industrial vs. PTT Global Chemical | Rojana Industrial vs. Quality Construction Products | Rojana Industrial vs. Bhiraj Office Leasehold | Rojana Industrial vs. Lohakit Metal 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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