Correlation Between Lohakit Metal and Sappe Public
Can any of the company-specific risk be diversified away by investing in both Lohakit Metal and Sappe 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 Sappe 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 Sappe Public, you can compare the effects of market volatilities on Lohakit Metal and Sappe 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 Sappe Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lohakit Metal and Sappe Public.
Diversification Opportunities for Lohakit Metal and Sappe Public
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lohakit and Sappe is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Lohakit Metal Public and Sappe Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sappe 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 Sappe Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sappe Public has no effect on the direction of Lohakit Metal i.e., Lohakit Metal and Sappe Public go up and down completely randomly.
Pair Corralation between Lohakit Metal and Sappe Public
Assuming the 90 days trading horizon Lohakit Metal is expected to generate 370.35 times less return on investment than Sappe Public. But when comparing it to its historical volatility, Lohakit Metal Public is 4.66 times less risky than Sappe Public. It trades about 0.0 of its potential returns per unit of risk. Sappe Public is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 6,775 in Sappe Public on September 1, 2024 and sell it today you would earn a total of 1,175 from holding Sappe Public or generate 17.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Lohakit Metal Public vs. Sappe Public
Performance |
| Timeline |
| Lohakit Metal Public |
| Sappe Public |
Lohakit Metal and Sappe Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lohakit Metal and Sappe Public
The main advantage of trading using opposite Lohakit Metal and Sappe Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lohakit Metal position performs unexpectedly, Sappe 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 Sappe Public will offset losses from the drop in Sappe Public's long position.| Lohakit Metal vs. Gulf Energy Development | Lohakit Metal vs. Energy Absolute Public | Lohakit Metal vs. WHA Public | Lohakit Metal vs. Bangkok Expressway and |
| Sappe Public vs. MK Restaurant Group | Sappe Public vs. TRC Construction Public | Sappe Public vs. Bangkok Expressway and | Sappe Public 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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