Correlation Between Ratchthani Leasing and CPR Gomu
Can any of the company-specific risk be diversified away by investing in both Ratchthani Leasing and CPR Gomu 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 Ratchthani Leasing and CPR Gomu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ratchthani Leasing Public and CPR Gomu Industrial, you can compare the effects of market volatilities on Ratchthani Leasing and CPR Gomu 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 Ratchthani Leasing with a short position of CPR Gomu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ratchthani Leasing and CPR Gomu.
Diversification Opportunities for Ratchthani Leasing and CPR Gomu
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ratchthani and CPR is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ratchthani Leasing Public and CPR Gomu Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPR Gomu Industrial and Ratchthani Leasing 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 Ratchthani Leasing Public are associated (or correlated) with CPR Gomu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPR Gomu Industrial has no effect on the direction of Ratchthani Leasing i.e., Ratchthani Leasing and CPR Gomu go up and down completely randomly.
Pair Corralation between Ratchthani Leasing and CPR Gomu
Assuming the 90 days trading horizon Ratchthani Leasing Public is expected to generate 26.03 times more return on investment than CPR Gomu. However, Ratchthani Leasing is 26.03 times more volatile than CPR Gomu Industrial. It trades about 0.05 of its potential returns per unit of risk. CPR Gomu Industrial is currently generating about 0.02 per unit of risk. If you would invest 268.00 in Ratchthani Leasing Public on September 1, 2024 and sell it today you would lose (97.00) from holding Ratchthani Leasing Public or give up 36.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ratchthani Leasing Public vs. CPR Gomu Industrial
Performance |
| Timeline |
| Ratchthani Leasing Public |
| CPR Gomu Industrial |
Ratchthani Leasing and CPR Gomu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ratchthani Leasing and CPR Gomu
The main advantage of trading using opposite Ratchthani Leasing and CPR Gomu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ratchthani Leasing position performs unexpectedly, CPR Gomu 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 CPR Gomu will offset losses from the drop in CPR Gomu's long position.| Ratchthani Leasing vs. Thanachart Capital Public | Ratchthani Leasing vs. TISCO Financial Group | Ratchthani Leasing vs. Srisawad Power 1979 | Ratchthani Leasing vs. Home Product Center |
| CPR Gomu vs. Moong Pattana International | CPR Gomu vs. Prodigy Public | CPR Gomu vs. Thai Ha Public | CPR Gomu vs. Kingsmen CMTI 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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