Correlation Between Stock Exchange and GFPT Public
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and GFPT 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 GFPT 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 GFPT Public, you can compare the effects of market volatilities on Stock Exchange and GFPT 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 GFPT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and GFPT Public.
Diversification Opportunities for Stock Exchange and GFPT Public
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Stock and GFPT is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and GFPT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFPT 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 GFPT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFPT Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and GFPT Public go up and down completely randomly.
Pair Corralation between Stock Exchange and GFPT Public
Assuming the 90 days trading horizon Stock Exchange Of is expected to generate 0.45 times more return on investment than GFPT Public. However, Stock Exchange Of is 2.23 times less risky than GFPT Public. It trades about -0.06 of its potential returns per unit of risk. GFPT Public is currently generating about -0.29 per unit of risk. If you would invest 146,064 in Stock Exchange Of on August 25, 2024 and sell it today you would lose (1,434) from holding Stock Exchange Of or give up 0.98% 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. GFPT Public
Performance |
| Timeline |
Stock Exchange and GFPT Public Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
GFPT Public
Pair trading matchups for GFPT Public
Pair Trading with Stock Exchange and GFPT Public
The main advantage of trading using opposite Stock Exchange and GFPT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, GFPT 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 GFPT Public will offset losses from the drop in GFPT Public's long position.| Stock Exchange vs. Bank of Ayudhya | Stock Exchange vs. ABSOLUTE CLEAN ENERGY | Stock Exchange vs. DOHOME | Stock Exchange vs. Srinanaporn Marketing Public |
| GFPT Public vs. CP ALL Public | GFPT Public vs. Carabao Group Public | GFPT Public vs. Thai Union Group | GFPT Public vs. Minor International 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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