Correlation Between Pico Public and Gunkul Engineering
Can any of the company-specific risk be diversified away by investing in both Pico Public and Gunkul Engineering 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 Pico Public and Gunkul Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pico Public and Gunkul Engineering Public, you can compare the effects of market volatilities on Pico Public and Gunkul Engineering 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 Pico Public with a short position of Gunkul Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pico Public and Gunkul Engineering.
Diversification Opportunities for Pico Public and Gunkul Engineering
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Pico and Gunkul is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Pico Public and Gunkul Engineering Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gunkul Engineering Public and Pico Public 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 Pico Public are associated (or correlated) with Gunkul Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gunkul Engineering Public has no effect on the direction of Pico Public i.e., Pico Public and Gunkul Engineering go up and down completely randomly.
Pair Corralation between Pico Public and Gunkul Engineering
Assuming the 90 days trading horizon Pico Public is expected to generate 51.07 times more return on investment than Gunkul Engineering. However, Pico Public is 51.07 times more volatile than Gunkul Engineering Public. It trades about 0.11 of its potential returns per unit of risk. Gunkul Engineering Public is currently generating about 0.02 per unit of risk. If you would invest 396.00 in Pico Public on August 29, 2024 and sell it today you would lose (38.00) from holding Pico Public or give up 9.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.41% |
| Values | Daily Returns |
Pico Public vs. Gunkul Engineering Public
Performance |
| Timeline |
| Pico Public |
| Gunkul Engineering Public |
Pico Public and Gunkul Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pico Public and Gunkul Engineering
The main advantage of trading using opposite Pico Public and Gunkul Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pico Public position performs unexpectedly, Gunkul Engineering 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 Gunkul Engineering will offset losses from the drop in Gunkul Engineering's long position.| Pico Public vs. Prodigy Public | Pico Public vs. Panjawattana Plastic Public | Pico Public vs. Phol Dhanya Public | Pico Public vs. Moong Pattana International |
| Gunkul Engineering vs. MCS Steel Public | Gunkul Engineering vs. Asia Plus Group | Gunkul Engineering vs. Lalin Property Public | Gunkul Engineering vs. Lam Soon 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Stocks Directory Find actively traded stocks across global markets |