Correlation Between Stock Exchange and Union Plastic
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Union 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 Union 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 Union Plastic Public, you can compare the effects of market volatilities on Stock Exchange and Union 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 Union Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Union Plastic.
Diversification Opportunities for Stock Exchange and Union Plastic
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Stock and Union is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Union Plastic Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Union Plastic 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 Union Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Union Plastic Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and Union Plastic go up and down completely randomly.
Pair Corralation between Stock Exchange and Union Plastic
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the Union Plastic. But the index apears to be less risky and, when comparing its historical volatility, Stock Exchange Of is 3.08 times less risky than Union Plastic. The index trades about -0.09 of its potential returns per unit of risk. The Union Plastic Public is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,700 in Union Plastic Public on August 24, 2024 and sell it today you would earn a total of 10.00 from holding Union Plastic Public or generate 0.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Union Plastic Public
Performance |
| Timeline |
Stock Exchange and Union Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Union Plastic Public
Pair trading matchups for Union Plastic
Pair Trading with Stock Exchange and Union Plastic
The main advantage of trading using opposite Stock Exchange and Union Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Union 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 Union Plastic will offset losses from the drop in Union Plastic's long position.| Stock Exchange vs. Krung Thai Bank | Stock Exchange vs. Silicon Craft Technology | Stock Exchange vs. Bank of Ayudhya | Stock Exchange vs. Thai Life Insurance |
| Union Plastic vs. Thai Poly Acrylic | Union Plastic vs. Union Pioneer Public | Union Plastic vs. Univentures Public | Union Plastic vs. Thantawan Industry 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |