Correlation Between Rojana Industrial and Workpoint Entertainment
Can any of the company-specific risk be diversified away by investing in both Rojana Industrial and Workpoint Entertainment 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 Workpoint Entertainment 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 Workpoint Entertainment Public, you can compare the effects of market volatilities on Rojana Industrial and Workpoint Entertainment 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 Workpoint Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rojana Industrial and Workpoint Entertainment.
Diversification Opportunities for Rojana Industrial and Workpoint Entertainment
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Rojana and Workpoint is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Rojana Industrial Park and Workpoint Entertainment Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workpoint Entertainment 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 Workpoint Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workpoint Entertainment has no effect on the direction of Rojana Industrial i.e., Rojana Industrial and Workpoint Entertainment go up and down completely randomly.
Pair Corralation between Rojana Industrial and Workpoint Entertainment
Assuming the 90 days trading horizon Rojana Industrial Park is expected to generate 1.09 times more return on investment than Workpoint Entertainment. However, Rojana Industrial is 1.09 times more volatile than Workpoint Entertainment Public. It trades about -0.26 of its potential returns per unit of risk. Workpoint Entertainment Public is currently generating about -0.42 per unit of risk. If you would invest 615.00 in Rojana Industrial Park on October 20, 2024 and sell it today you would lose (55.00) from holding Rojana Industrial Park or give up 8.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rojana Industrial Park vs. Workpoint Entertainment Public
Performance |
| Timeline |
| Rojana Industrial Park |
| Workpoint Entertainment |
Rojana Industrial and Workpoint Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rojana Industrial and Workpoint Entertainment
The main advantage of trading using opposite Rojana Industrial and Workpoint Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rojana Industrial position performs unexpectedly, Workpoint Entertainment 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 Workpoint Entertainment will offset losses from the drop in Workpoint Entertainment'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 |
| Workpoint Entertainment vs. Siamgas and Petrochemicals | Workpoint Entertainment vs. Namyong Terminal PCL | Workpoint Entertainment vs. MCOT Public | Workpoint Entertainment vs. The Erawan Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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