Correlation Between Tropical Canning and Globlex Holding
Can any of the company-specific risk be diversified away by investing in both Tropical Canning and Globlex Holding 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 Tropical Canning and Globlex Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tropical Canning Public and Globlex Holding Management, you can compare the effects of market volatilities on Tropical Canning and Globlex Holding 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 Tropical Canning with a short position of Globlex Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tropical Canning and Globlex Holding.
Diversification Opportunities for Tropical Canning and Globlex Holding
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tropical and Globlex is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Tropical Canning Public and Globlex Holding Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globlex Holding Mana and Tropical Canning 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 Tropical Canning Public are associated (or correlated) with Globlex Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globlex Holding Mana has no effect on the direction of Tropical Canning i.e., Tropical Canning and Globlex Holding go up and down completely randomly.
Pair Corralation between Tropical Canning and Globlex Holding
Assuming the 90 days horizon Tropical Canning Public is expected to generate 1.0 times more return on investment than Globlex Holding. However, Tropical Canning is 1.0 times more volatile than Globlex Holding Management. It trades about 0.07 of its potential returns per unit of risk. Globlex Holding Management is currently generating about 0.07 per unit of risk. If you would invest 607.00 in Tropical Canning Public on September 4, 2024 and sell it today you would earn a total of 83.00 from holding Tropical Canning Public or generate 13.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tropical Canning Public vs. Globlex Holding Management
Performance |
| Timeline |
| Tropical Canning Public |
| Globlex Holding Mana |
Tropical Canning and Globlex Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tropical Canning and Globlex Holding
The main advantage of trading using opposite Tropical Canning and Globlex Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tropical Canning position performs unexpectedly, Globlex Holding 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 Globlex Holding will offset losses from the drop in Globlex Holding's long position.| Tropical Canning vs. Airports of Thailand | Tropical Canning vs. PTT Public | Tropical Canning vs. Bangkok Dusit Medical | Tropical Canning vs. Kasikornbank Public |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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