Correlation Between TPI Polene and Rojana Industrial
Can any of the company-specific risk be diversified away by investing in both TPI Polene and Rojana Industrial 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 TPI Polene and Rojana Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TPI Polene Power and Rojana Industrial Park, you can compare the effects of market volatilities on TPI Polene and Rojana Industrial 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 TPI Polene with a short position of Rojana Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPI Polene and Rojana Industrial.
Diversification Opportunities for TPI Polene and Rojana Industrial
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TPI and Rojana is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding TPI Polene Power and Rojana Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rojana Industrial Park and TPI Polene 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 TPI Polene Power are associated (or correlated) with Rojana Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rojana Industrial Park has no effect on the direction of TPI Polene i.e., TPI Polene and Rojana Industrial go up and down completely randomly.
Pair Corralation between TPI Polene and Rojana Industrial
Assuming the 90 days trading horizon TPI Polene Power is expected to under-perform the Rojana Industrial. But the stock apears to be less risky and, when comparing its historical volatility, TPI Polene Power is 2.81 times less risky than Rojana Industrial. The stock trades about 0.0 of its potential returns per unit of risk. The Rojana Industrial Park is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 581.00 in Rojana Industrial Park on August 31, 2024 and sell it today you would earn a total of 49.00 from holding Rojana Industrial Park or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
TPI Polene Power vs. Rojana Industrial Park
Performance |
| Timeline |
| TPI Polene Power |
| Rojana Industrial Park |
TPI Polene and Rojana Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TPI Polene and Rojana Industrial
The main advantage of trading using opposite TPI Polene and Rojana Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPI Polene position performs unexpectedly, Rojana Industrial 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 Rojana Industrial will offset losses from the drop in Rojana Industrial's long position.| TPI Polene vs. Energy Absolute Public | TPI Polene vs. BGrimm Power Public | TPI Polene vs. CP ALL Public | TPI Polene vs. PTT Public |
| Rojana Industrial vs. 2S Metal Public | Rojana Industrial vs. Praram 9 Hospital | Rojana Industrial vs. Digital Telecommunications Infrastructure | Rojana Industrial vs. Healthlead 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| 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 | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |