Correlation Between TEAM Consulting and Erawan
Can any of the company-specific risk be diversified away by investing in both TEAM Consulting and Erawan 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 TEAM Consulting and Erawan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TEAM Consulting Engineering and The Erawan Group, you can compare the effects of market volatilities on TEAM Consulting and Erawan 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 TEAM Consulting with a short position of Erawan. Check out your portfolio center. Please also check ongoing floating volatility patterns of TEAM Consulting and Erawan.
Diversification Opportunities for TEAM Consulting and Erawan
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between TEAM and Erawan is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding TEAM Consulting Engineering and The Erawan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erawan Group and TEAM Consulting 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 TEAM Consulting Engineering are associated (or correlated) with Erawan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erawan Group has no effect on the direction of TEAM Consulting i.e., TEAM Consulting and Erawan go up and down completely randomly.
Pair Corralation between TEAM Consulting and Erawan
Assuming the 90 days trading horizon TEAM Consulting Engineering is expected to under-perform the Erawan. In addition to that, TEAM Consulting is 1.09 times more volatile than The Erawan Group. It trades about -0.57 of its total potential returns per unit of risk. The Erawan Group is currently generating about 0.01 per unit of volatility. If you would invest 400.00 in The Erawan Group on September 1, 2024 and sell it today you would earn a total of 0.00 from holding The Erawan Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
TEAM Consulting Engineering vs. The Erawan Group
Performance |
| Timeline |
| TEAM Consulting Engi |
| Erawan Group |
TEAM Consulting and Erawan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TEAM Consulting and Erawan
The main advantage of trading using opposite TEAM Consulting and Erawan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TEAM Consulting position performs unexpectedly, Erawan 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 Erawan will offset losses from the drop in Erawan's long position.| TEAM Consulting vs. Power Solution Technologies | TEAM Consulting vs. Kingsmen CMTI Public | TEAM Consulting vs. Panjawattana Plastic Public | TEAM Consulting vs. Cho Thavee Public |
| Erawan vs. Central Plaza Hotel | Erawan vs. Minor International Public | Erawan vs. Central Pattana Public | Erawan vs. CP ALL 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |