Correlation Between PINTHONG INDUSTRIAL and Charan Insurance
Can any of the company-specific risk be diversified away by investing in both PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL and Charan Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PINTHONG INDUSTRIAL PARK and Charan Insurance Public, you can compare the effects of market volatilities on PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL with a short position of Charan Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of PINTHONG INDUSTRIAL and Charan Insurance.
Diversification Opportunities for PINTHONG INDUSTRIAL and Charan Insurance
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PINTHONG and Charan is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding PINTHONG INDUSTRIAL PARK 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 PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL PARK 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 PINTHONG INDUSTRIAL i.e., PINTHONG INDUSTRIAL and Charan Insurance go up and down completely randomly.
Pair Corralation between PINTHONG INDUSTRIAL and Charan Insurance
Assuming the 90 days trading horizon PINTHONG INDUSTRIAL is expected to generate 14.51 times less return on investment than Charan Insurance. But when comparing it to its historical volatility, PINTHONG INDUSTRIAL PARK is 17.53 times less risky than Charan Insurance. It trades about 0.07 of its potential returns per unit of risk. Charan Insurance Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,230 in Charan Insurance Public on September 14, 2024 and sell it today you would lose (50.00) from holding Charan Insurance Public or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PINTHONG INDUSTRIAL PARK vs. Charan Insurance Public
Performance |
| Timeline |
| PINTHONG INDUSTRIAL PARK |
| Charan Insurance Public |
PINTHONG INDUSTRIAL and Charan Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PINTHONG INDUSTRIAL and Charan Insurance
The main advantage of trading using opposite PINTHONG INDUSTRIAL and Charan Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PINTHONG INDUSTRIAL 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.| PINTHONG INDUSTRIAL vs. Peace Living PCL | PINTHONG INDUSTRIAL vs. The Platinum Group | PINTHONG INDUSTRIAL vs. Property Perfect Public | PINTHONG INDUSTRIAL vs. Siamese Asset Public |
| Charan Insurance vs. Lohakit Metal Public | Charan Insurance vs. TRV Rubber Products | Charan Insurance vs. WHA Utilities and | Charan Insurance vs. Symphony Communication 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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