Correlation Between RS Public and Gunkul Engineering
Can any of the company-specific risk be diversified away by investing in both RS 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 RS 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 RS Public and Gunkul Engineering Public, you can compare the effects of market volatilities on RS 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 RS Public with a short position of Gunkul Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of RS Public and Gunkul Engineering.
Diversification Opportunities for RS Public and Gunkul Engineering
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between RS-R and Gunkul is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding RS 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 RS 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 RS 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 RS Public i.e., RS Public and Gunkul Engineering go up and down completely randomly.
Pair Corralation between RS Public and Gunkul Engineering
Assuming the 90 days trading horizon RS Public is expected to generate 77.04 times more return on investment than Gunkul Engineering. However, RS Public is 77.04 times more volatile than Gunkul Engineering Public. It trades about 0.16 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 720.00 in RS Public on September 2, 2024 and sell it today you would lose (150.00) from holding RS Public or give up 20.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RS Public vs. Gunkul Engineering Public
Performance |
| Timeline |
| RS Public |
| Gunkul Engineering Public |
RS Public and Gunkul Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RS Public and Gunkul Engineering
The main advantage of trading using opposite RS Public and Gunkul Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RS 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.| RS Public vs. Major Cineplex Group | RS Public vs. The Erawan Group | RS Public vs. Autocorp Holding Public | RS Public vs. XSpring Capital Public |
| Gunkul Engineering vs. Gulf Energy Development | Gunkul Engineering vs. Energy Absolute Public | Gunkul Engineering vs. WHA Public | Gunkul Engineering vs. Bangkok Expressway and |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |