Correlation Between Namwiwat Medical and Charan Insurance
Can any of the company-specific risk be diversified away by investing in both Namwiwat Medical and Charan Insurance 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 Namwiwat Medical and Charan Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Namwiwat Medical and Charan Insurance Public, you can compare the effects of market volatilities on Namwiwat Medical and Charan Insurance 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 Namwiwat Medical with a short position of Charan Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namwiwat Medical and Charan Insurance.
Diversification Opportunities for Namwiwat Medical and Charan Insurance
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Namwiwat and Charan is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Namwiwat Medical and Charan Insurance Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charan Insurance Public and Namwiwat Medical 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 Namwiwat Medical are associated (or correlated) with Charan Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charan Insurance Public has no effect on the direction of Namwiwat Medical i.e., Namwiwat Medical and Charan Insurance go up and down completely randomly.
Pair Corralation between Namwiwat Medical and Charan Insurance
Assuming the 90 days trading horizon Namwiwat Medical is expected to generate 0.73 times more return on investment than Charan Insurance. However, Namwiwat Medical is 1.36 times less risky than Charan Insurance. It trades about 0.02 of its potential returns per unit of risk. Charan Insurance Public is currently generating about -0.03 per unit of risk. If you would invest 454.00 in Namwiwat Medical on November 3, 2024 and sell it today you would earn a total of 2.00 from holding Namwiwat Medical or generate 0.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Namwiwat Medical vs. Charan Insurance Public
Performance |
| Timeline |
| Namwiwat Medical |
| Charan Insurance Public |
Namwiwat Medical and Charan Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namwiwat Medical and Charan Insurance
The main advantage of trading using opposite Namwiwat Medical and Charan Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namwiwat Medical position performs unexpectedly, Charan Insurance 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 Charan Insurance will offset losses from the drop in Charan Insurance's long position.| Namwiwat Medical vs. Global Green Chemicals | Namwiwat Medical vs. Siam Technic Concrete | Namwiwat Medical vs. AAPICO Hitech Public | Namwiwat Medical vs. Eastern Technical Engineering |
| Charan Insurance vs. Thai President Foods | Charan Insurance vs. Chow Steel Industries | Charan Insurance vs. Syntec Construction Public | Charan Insurance vs. Sahamit Machinery 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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