Correlation Between Panjawattana Plastic and Exotic Food
Can any of the company-specific risk be diversified away by investing in both Panjawattana Plastic and Exotic Food 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 Panjawattana Plastic and Exotic Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Panjawattana Plastic Public and Exotic Food Public, you can compare the effects of market volatilities on Panjawattana Plastic and Exotic Food 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 Panjawattana Plastic with a short position of Exotic Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Panjawattana Plastic and Exotic Food.
Diversification Opportunities for Panjawattana Plastic and Exotic Food
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Panjawattana and Exotic is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Panjawattana Plastic Public and Exotic Food Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exotic Food Public and Panjawattana Plastic 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 Panjawattana Plastic Public are associated (or correlated) with Exotic Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exotic Food Public has no effect on the direction of Panjawattana Plastic i.e., Panjawattana Plastic and Exotic Food go up and down completely randomly.
Pair Corralation between Panjawattana Plastic and Exotic Food
Assuming the 90 days trading horizon Panjawattana Plastic Public is expected to generate 14.37 times more return on investment than Exotic Food. However, Panjawattana Plastic is 14.37 times more volatile than Exotic Food Public. It trades about 0.04 of its potential returns per unit of risk. Exotic Food Public is currently generating about 0.05 per unit of risk. If you would invest 396.00 in Panjawattana Plastic Public on August 28, 2024 and sell it today you would lose (150.00) from holding Panjawattana Plastic Public or give up 37.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Panjawattana Plastic Public vs. Exotic Food Public
Performance |
| Timeline |
| Panjawattana Plastic |
| Exotic Food Public |
Panjawattana Plastic and Exotic Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Panjawattana Plastic and Exotic Food
The main advantage of trading using opposite Panjawattana Plastic and Exotic Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Panjawattana Plastic position performs unexpectedly, Exotic Food 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 Exotic Food will offset losses from the drop in Exotic Food's long position.| Panjawattana Plastic vs. Kingsmen CMTI Public | Panjawattana Plastic vs. Project Planning Service | Panjawattana Plastic vs. Power Solution Technologies | Panjawattana Plastic vs. Hydrotek Public |
| Exotic Food vs. Mega Lifesciences Public | Exotic Food vs. Com7 PCL | Exotic Food vs. Thai Union Group | Exotic Food vs. Jay Mart 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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