Correlation Between Stock Exchange and Ekarat Engineering
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Ekarat 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 Stock Exchange and Ekarat Engineering into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and Ekarat Engineering Public, you can compare the effects of market volatilities on Stock Exchange and Ekarat 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 Stock Exchange with a short position of Ekarat Engineering. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Ekarat Engineering.
Diversification Opportunities for Stock Exchange and Ekarat Engineering
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stock and Ekarat is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Ekarat Engineering Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekarat Engineering Public and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with Ekarat Engineering. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekarat Engineering Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and Ekarat Engineering go up and down completely randomly.
Pair Corralation between Stock Exchange and Ekarat Engineering
Assuming the 90 days trading horizon Stock Exchange is expected to generate 225.37 times less return on investment than Ekarat Engineering. But when comparing it to its historical volatility, Stock Exchange Of is 121.66 times less risky than Ekarat Engineering. It trades about 0.04 of its potential returns per unit of risk. Ekarat Engineering Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 95.00 in Ekarat Engineering Public on September 3, 2024 and sell it today you would lose (3.00) from holding Ekarat Engineering Public or give up 3.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Ekarat Engineering Public
Performance |
| Timeline |
Stock Exchange and Ekarat Engineering Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Ekarat Engineering Public
Pair trading matchups for Ekarat Engineering
Pair Trading with Stock Exchange and Ekarat Engineering
The main advantage of trading using opposite Stock Exchange and Ekarat Engineering positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Ekarat 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 Ekarat Engineering will offset losses from the drop in Ekarat Engineering's long position.| Stock Exchange vs. Siam Wellness Group | Stock Exchange vs. ABSOLUTE CLEAN ENERGY | Stock Exchange vs. Sri panwa Hospitality | Stock Exchange vs. 2S Metal Public |
| Ekarat Engineering vs. JD Food PCL | Ekarat Engineering vs. Mena Transport Public | Ekarat Engineering vs. KTBST Mixed Leasehold | Ekarat Engineering vs. Quality Construction Products |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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