Correlation Between Rojana Industrial and Fine Metal
Can any of the company-specific risk be diversified away by investing in both Rojana Industrial and Fine Metal 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 Rojana Industrial and Fine Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rojana Industrial Park and Fine Metal Technologies, you can compare the effects of market volatilities on Rojana Industrial and Fine Metal 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 Rojana Industrial with a short position of Fine Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rojana Industrial and Fine Metal.
Diversification Opportunities for Rojana Industrial and Fine Metal
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Rojana and Fine is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Rojana Industrial Park and Fine Metal Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fine Metal Technologies and Rojana 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 Rojana Industrial Park are associated (or correlated) with Fine Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fine Metal Technologies has no effect on the direction of Rojana Industrial i.e., Rojana Industrial and Fine Metal go up and down completely randomly.
Pair Corralation between Rojana Industrial and Fine Metal
Assuming the 90 days trading horizon Rojana Industrial Park is expected to under-perform the Fine Metal. But the stock apears to be less risky and, when comparing its historical volatility, Rojana Industrial Park is 1.34 times less risky than Fine Metal. The stock trades about -0.26 of its potential returns per unit of risk. The Fine Metal Technologies is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,250 in Fine Metal Technologies on October 20, 2024 and sell it today you would earn a total of 25.00 from holding Fine Metal Technologies or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rojana Industrial Park vs. Fine Metal Technologies
Performance |
| Timeline |
| Rojana Industrial Park |
| Fine Metal Technologies |
Rojana Industrial and Fine Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rojana Industrial and Fine Metal
The main advantage of trading using opposite Rojana Industrial and Fine Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rojana Industrial position performs unexpectedly, Fine Metal 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 Fine Metal will offset losses from the drop in Fine Metal's long position.| Rojana Industrial vs. Ratch Group Public | Rojana Industrial vs. RPCG Public | Rojana Industrial vs. Siam City Cement | Rojana Industrial vs. Siamgas and Petrochemicals |
| Fine Metal vs. GFPT Public | Fine Metal vs. Kulthorn Kirby Public | Fine Metal vs. Chumporn Palm Oil | Fine Metal vs. Haad Thip 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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