Correlation Between Sabuy Technology and Gunkul Engineering
Can any of the company-specific risk be diversified away by investing in both Sabuy Technology 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 Sabuy Technology and Gunkul Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabuy Technology Public and Gunkul Engineering Public, you can compare the effects of market volatilities on Sabuy Technology 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 Sabuy Technology with a short position of Gunkul Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabuy Technology and Gunkul Engineering.
Diversification Opportunities for Sabuy Technology and Gunkul Engineering
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sabuy and Gunkul is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sabuy Technology 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 Sabuy Technology 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 Sabuy Technology 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 Sabuy Technology i.e., Sabuy Technology and Gunkul Engineering go up and down completely randomly.
Pair Corralation between Sabuy Technology and Gunkul Engineering
Assuming the 90 days trading horizon Sabuy Technology Public is expected to generate 20.76 times more return on investment than Gunkul Engineering. However, Sabuy Technology is 20.76 times more volatile than Gunkul Engineering Public. It trades about 0.03 of its potential returns per unit of risk. Gunkul Engineering Public is currently generating about -0.06 per unit of risk. If you would invest 1,065 in Sabuy Technology Public on August 25, 2024 and sell it today you would lose (1,021) from holding Sabuy Technology Public or give up 95.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Sabuy Technology Public vs. Gunkul Engineering Public
Performance |
| Timeline |
| Sabuy Technology Public |
| Gunkul Engineering Public |
Sabuy Technology and Gunkul Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabuy Technology and Gunkul Engineering
The main advantage of trading using opposite Sabuy Technology and Gunkul Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabuy Technology 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.| Sabuy Technology vs. Kulthorn Kirby Public | Sabuy Technology vs. The Erawan Group | Sabuy Technology vs. Airports of Thailand | Sabuy Technology vs. Eastern Technical Engineering |
| Gunkul Engineering vs. Gulf Energy Development | Gunkul Engineering vs. Energy Absolute Public | Gunkul Engineering vs. Banpu Public | Gunkul Engineering vs. WHA 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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