Correlation Between TRC Construction and Lohakit Metal
Can any of the company-specific risk be diversified away by investing in both TRC Construction and Lohakit Metal 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 TRC Construction and Lohakit Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRC Construction Public and Lohakit Metal Public, you can compare the effects of market volatilities on TRC Construction and Lohakit Metal 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 TRC Construction with a short position of Lohakit Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRC Construction and Lohakit Metal.
Diversification Opportunities for TRC Construction and Lohakit Metal
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TRC and Lohakit is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding TRC Construction Public and Lohakit Metal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lohakit Metal Public and TRC Construction 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 TRC Construction Public are associated (or correlated) with Lohakit Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lohakit Metal Public has no effect on the direction of TRC Construction i.e., TRC Construction and Lohakit Metal go up and down completely randomly.
Pair Corralation between TRC Construction and Lohakit Metal
Assuming the 90 days trading horizon TRC Construction Public is expected to under-perform the Lohakit Metal. In addition to that, TRC Construction is 15.71 times more volatile than Lohakit Metal Public. It trades about -0.04 of its total potential returns per unit of risk. Lohakit Metal Public is currently generating about 0.0 per unit of volatility. If you would invest 376.00 in Lohakit Metal Public on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Lohakit Metal Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRC Construction Public vs. Lohakit Metal Public
Performance |
| Timeline |
| TRC Construction Public |
| Lohakit Metal Public |
TRC Construction and Lohakit Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRC Construction and Lohakit Metal
The main advantage of trading using opposite TRC Construction and Lohakit Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRC Construction position performs unexpectedly, Lohakit Metal 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 Lohakit Metal will offset losses from the drop in Lohakit Metal's long position.| TRC Construction vs. Gulf Energy Development | TRC Construction vs. Energy Absolute Public | TRC Construction vs. WHA Public | TRC Construction vs. Bangkok Expressway and |
| Lohakit Metal vs. Gulf Energy Development | Lohakit Metal vs. Energy Absolute Public | Lohakit Metal vs. WHA Public | Lohakit Metal vs. TRC Construction 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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