Correlation Between Stock Exchange and Panjawattana Plastic
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Panjawattana Plastic 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 Panjawattana Plastic 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 Panjawattana Plastic Public, you can compare the effects of market volatilities on Stock Exchange and Panjawattana Plastic 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 Panjawattana Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Panjawattana Plastic.
Diversification Opportunities for Stock Exchange and Panjawattana Plastic
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Stock and Panjawattana is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Panjawattana Plastic Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Panjawattana Plastic 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 Panjawattana Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Panjawattana Plastic has no effect on the direction of Stock Exchange i.e., Stock Exchange and Panjawattana Plastic go up and down completely randomly.
Pair Corralation between Stock Exchange and Panjawattana Plastic
Assuming the 90 days trading horizon Stock Exchange is expected to generate 147.3 times less return on investment than Panjawattana Plastic. But when comparing it to its historical volatility, Stock Exchange Of is 123.53 times less risky than Panjawattana Plastic. It trades about 0.07 of its potential returns per unit of risk. Panjawattana Plastic Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 298.00 in Panjawattana Plastic Public on August 25, 2024 and sell it today you would lose (48.00) from holding Panjawattana Plastic Public or give up 16.11% 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. Panjawattana Plastic Public
Performance |
| Timeline |
Stock Exchange and Panjawattana Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Panjawattana Plastic Public
Pair trading matchups for Panjawattana Plastic
Pair Trading with Stock Exchange and Panjawattana Plastic
The main advantage of trading using opposite Stock Exchange and Panjawattana Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Panjawattana Plastic 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 Panjawattana Plastic will offset losses from the drop in Panjawattana Plastic's long position.| Stock Exchange vs. PTT OIL RETAIL | Stock Exchange vs. Bangkok Bank Public | Stock Exchange vs. Bhiraj Office Leasehold | Stock Exchange vs. Lotus Retail Growth |
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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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