Correlation Between Ocean Glass and Central Pattana
Can any of the company-specific risk be diversified away by investing in both Ocean Glass and Central Pattana 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 Ocean Glass and Central Pattana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ocean Glass Public and Central Pattana Public, you can compare the effects of market volatilities on Ocean Glass and Central Pattana 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 Ocean Glass with a short position of Central Pattana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ocean Glass and Central Pattana.
Diversification Opportunities for Ocean Glass and Central Pattana
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ocean and Central is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Ocean Glass Public and Central Pattana Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Pattana Public and Ocean Glass 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 Ocean Glass Public are associated (or correlated) with Central Pattana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Pattana Public has no effect on the direction of Ocean Glass i.e., Ocean Glass and Central Pattana go up and down completely randomly.
Pair Corralation between Ocean Glass and Central Pattana
Assuming the 90 days trading horizon Ocean Glass Public is expected to generate 38.77 times more return on investment than Central Pattana. However, Ocean Glass is 38.77 times more volatile than Central Pattana Public. It trades about 0.05 of its potential returns per unit of risk. Central Pattana Public is currently generating about -0.01 per unit of risk. If you would invest 2,410 in Ocean Glass Public on September 12, 2024 and sell it today you would lose (510.00) from holding Ocean Glass Public or give up 21.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.69% |
| Values | Daily Returns |
Ocean Glass Public vs. Central Pattana Public
Performance |
| Timeline |
| Ocean Glass Public |
| Central Pattana Public |
Ocean Glass and Central Pattana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ocean Glass and Central Pattana
The main advantage of trading using opposite Ocean Glass and Central Pattana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ocean Glass position performs unexpectedly, Central Pattana 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 Central Pattana will offset losses from the drop in Central Pattana's long position.| Ocean Glass vs. Hwa Fong Rubber | Ocean Glass vs. AAPICO Hitech Public | Ocean Glass vs. Haad Thip Public | Ocean Glass vs. Italian Thai Development Public |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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