Correlation Between T S and CPR Gomu
Can any of the company-specific risk be diversified away by investing in both T S 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 T S and CPR Gomu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T S Flour and CPR Gomu Industrial, you can compare the effects of market volatilities on T S 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 T S with a short position of CPR Gomu. Check out your portfolio center. Please also check ongoing floating volatility patterns of T S and CPR Gomu.
Diversification Opportunities for T S and CPR Gomu
Pay attention - limited upside
The 3 months correlation between TMILL and CPR is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding T S Flour 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 T S 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 T S Flour 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 T S i.e., T S and CPR Gomu go up and down completely randomly.
Pair Corralation between T S and CPR Gomu
Assuming the 90 days trading horizon T S Flour is expected to under-perform the CPR Gomu. But the stock apears to be less risky and, when comparing its historical volatility, T S Flour is 1.71 times less risky than CPR Gomu. The stock trades about -0.23 of its potential returns per unit of risk. The CPR Gomu Industrial is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 292.00 in CPR Gomu Industrial on September 12, 2024 and sell it today you would earn a total of 54.00 from holding CPR Gomu Industrial or generate 18.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
T S Flour vs. CPR Gomu Industrial
Performance |
| Timeline |
| T S Flour |
| CPR Gomu Industrial |
T S and CPR Gomu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T S and CPR Gomu
The main advantage of trading using opposite T S and CPR Gomu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T S 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.The idea behind T S Flour and CPR Gomu Industrial pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CPR Gomu vs. Thoresen Thai Agencies | CPR Gomu vs. Sri Trang Agro Industry | CPR Gomu vs. TPI Polene Public | CPR Gomu vs. Ratchthani Leasing 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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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