Correlation Between Srisawad Power and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Srisawad Power and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Srisawad Power and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srisawad Power and Dow Jones.
Diversification Opportunities for Srisawad Power and Dow Jones
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Srisawad and Dow is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Srisawad Power 1979 and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Srisawad Power i.e., Srisawad Power and Dow Jones go up and down completely randomly.
Pair Corralation between Srisawad Power and Dow Jones
Assuming the 90 days trading horizon Srisawad Power 1979 is expected to generate 63.51 times more return on investment than Dow Jones. However, Srisawad Power is 63.51 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 4,284 in Srisawad Power 1979 on September 3, 2024 and sell it today you would lose (209.00) from holding Srisawad Power 1979 or give up 4.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.58% |
| Values | Daily Returns |
Srisawad Power 1979 vs. Dow Jones Industrial
Performance |
| Timeline |
Srisawad Power and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Srisawad Power 1979
Pair trading matchups for Srisawad Power
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Srisawad Power and Dow Jones
The main advantage of trading using opposite Srisawad Power and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srisawad Power position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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