Correlation Between Major Cineplex and Erawan
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By analyzing existing cross correlation between Major Cineplex Group and The Erawan Group, you can compare the effects of market volatilities on Major Cineplex and Erawan 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 Major Cineplex with a short position of Erawan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Major Cineplex and Erawan.
Diversification Opportunities for Major Cineplex and Erawan
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Major and Erawan is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Major Cineplex Group and The Erawan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erawan Group and Major Cineplex 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 Major Cineplex Group are associated (or correlated) with Erawan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erawan Group has no effect on the direction of Major Cineplex i.e., Major Cineplex and Erawan go up and down completely randomly.
Pair Corralation between Major Cineplex and Erawan
Assuming the 90 days trading horizon Major Cineplex is expected to generate 11.86 times less return on investment than Erawan. But when comparing it to its historical volatility, Major Cineplex Group is 3.49 times less risky than Erawan. It trades about 0.0 of its potential returns per unit of risk. The Erawan Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 400.00 in The Erawan Group on September 1, 2024 and sell it today you would earn a total of 0.00 from holding The Erawan Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Major Cineplex Group vs. The Erawan Group
Performance |
| Timeline |
| Major Cineplex Group |
| Erawan Group |
Major Cineplex and Erawan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Major Cineplex and Erawan
The main advantage of trading using opposite Major Cineplex and Erawan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Major Cineplex position performs unexpectedly, Erawan 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 Erawan will offset losses from the drop in Erawan's long position.| Major Cineplex vs. Healthlead Public | Major Cineplex vs. JD Food PCL | Major Cineplex vs. TMBThanachart Bank Public | Major Cineplex vs. Exotic Food Public |
| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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