Correlation Between Srisawad Power and Carabao Group
Can any of the company-specific risk be diversified away by investing in both Srisawad Power and Carabao Group 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 Srisawad Power and Carabao Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Srisawad Power 1979 and Carabao Group Public, you can compare the effects of market volatilities on Srisawad Power and Carabao Group 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 Srisawad Power with a short position of Carabao Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srisawad Power and Carabao Group.
Diversification Opportunities for Srisawad Power and Carabao Group
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Srisawad and Carabao is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Srisawad Power 1979 and Carabao Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Carabao Group Public and Srisawad Power 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 Srisawad Power 1979 are associated (or correlated) with Carabao Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Carabao Group Public has no effect on the direction of Srisawad Power i.e., Srisawad Power and Carabao Group go up and down completely randomly.
Pair Corralation between Srisawad Power and Carabao Group
Assuming the 90 days trading horizon Srisawad Power 1979 is expected to under-perform the Carabao Group. But the stock apears to be less risky and, when comparing its historical volatility, Srisawad Power 1979 is 1.32 times less risky than Carabao Group. The stock trades about -0.11 of its potential returns per unit of risk. The Carabao Group Public is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 7,775 in Carabao Group Public on October 24, 2024 and sell it today you would earn a total of 25.00 from holding Carabao Group Public or generate 0.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Srisawad Power 1979 vs. Carabao Group Public
Performance |
| Timeline |
| Srisawad Power 1979 |
| Carabao Group Public |
Srisawad Power and Carabao Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srisawad Power and Carabao Group
The main advantage of trading using opposite Srisawad Power and Carabao Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srisawad Power position performs unexpectedly, Carabao Group 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 Carabao Group will offset losses from the drop in Carabao Group's long position.| Srisawad Power vs. Muangthai Capital Public | Srisawad Power vs. Carabao Group Public | Srisawad Power vs. TISCO Financial Group | Srisawad Power vs. Minor International Public |
| Carabao Group vs. CP ALL Public | Carabao Group vs. Minor International Public | Carabao Group vs. Srisawad Power 1979 | Carabao Group vs. Home Product Center |
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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