Correlation Between Unique Engineering and CH Karnchang
Can any of the company-specific risk be diversified away by investing in both Unique Engineering and CH Karnchang 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 Unique Engineering and CH Karnchang into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unique Engineering and and CH Karnchang Public, you can compare the effects of market volatilities on Unique Engineering and CH Karnchang 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 Unique Engineering with a short position of CH Karnchang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unique Engineering and CH Karnchang.
Diversification Opportunities for Unique Engineering and CH Karnchang
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Unique and CH Karnchang is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Unique Engineering and and CH Karnchang Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CH Karnchang Public and Unique Engineering 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 Unique Engineering and are associated (or correlated) with CH Karnchang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CH Karnchang Public has no effect on the direction of Unique Engineering i.e., Unique Engineering and CH Karnchang go up and down completely randomly.
Pair Corralation between Unique Engineering and CH Karnchang
Assuming the 90 days trading horizon Unique Engineering and is expected to generate 74.29 times more return on investment than CH Karnchang. However, Unique Engineering is 74.29 times more volatile than CH Karnchang Public. It trades about 0.11 of its potential returns per unit of risk. CH Karnchang Public is currently generating about -0.03 per unit of risk. If you would invest 268.00 in Unique Engineering and on September 2, 2024 and sell it today you would earn a total of 14.00 from holding Unique Engineering and or generate 5.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unique Engineering and vs. CH Karnchang Public
Performance |
| Timeline |
| Unique Engineering and |
| CH Karnchang Public |
Unique Engineering and CH Karnchang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unique Engineering and CH Karnchang
The main advantage of trading using opposite Unique Engineering and CH Karnchang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unique Engineering position performs unexpectedly, CH Karnchang 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 CH Karnchang will offset losses from the drop in CH Karnchang's long position.| Unique Engineering vs. CH Karnchang Public | Unique Engineering vs. Italian Thai Development Public | Unique Engineering vs. LPN Development Public | Unique Engineering vs. WHA Public |
| CH Karnchang vs. Gulf Energy Development | CH Karnchang vs. Energy Absolute Public | CH Karnchang vs. WHA Public | CH Karnchang vs. Bangkok Expressway and |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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