Correlation Between Stock Exchange and Dohome Public
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Dohome Public 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 Dohome Public 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 Dohome Public, you can compare the effects of market volatilities on Stock Exchange and Dohome Public 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 Dohome Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Dohome Public.
Diversification Opportunities for Stock Exchange and Dohome Public
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stock and Dohome is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Dohome Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dohome 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 Dohome Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dohome Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and Dohome Public go up and down completely randomly.
Pair Corralation between Stock Exchange and Dohome Public
Assuming the 90 days trading horizon Stock Exchange Of is expected to generate 0.31 times more return on investment than Dohome Public. However, Stock Exchange Of is 3.24 times less risky than Dohome Public. It trades about -0.03 of its potential returns per unit of risk. Dohome Public is currently generating about -0.01 per unit of risk. If you would invest 162,228 in Stock Exchange Of on August 28, 2024 and sell it today you would lose (18,403) from holding Stock Exchange Of or give up 11.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Dohome Public
Performance |
| Timeline |
Stock Exchange and Dohome Public Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Dohome Public
Pair trading matchups for Dohome Public
Pair Trading with Stock Exchange and Dohome Public
The main advantage of trading using opposite Stock Exchange and Dohome Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Dohome Public 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 Dohome Public will offset losses from the drop in Dohome Public's long position.| Stock Exchange vs. Turnkey Communication Services | Stock Exchange vs. Winnergy Medical Public | Stock Exchange vs. Charoen Pokphand Foods | Stock Exchange vs. Information and Communication |
| Dohome Public vs. The Erawan Group | Dohome Public vs. Ditto Public | Dohome Public vs. Airports of Thailand | Dohome Public vs. Eastern Technical Engineering |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |