Correlation Between Union Plastic and Central Retail
Can any of the company-specific risk be diversified away by investing in both Union Plastic and Central Retail 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 Union Plastic and Central Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Union Plastic Public and Central Retail, you can compare the effects of market volatilities on Union Plastic and Central Retail 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 Union Plastic with a short position of Central Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Plastic and Central Retail.
Diversification Opportunities for Union Plastic and Central Retail
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Union and Central is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Union Plastic Public and Central Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Retail and Union Plastic 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 Union Plastic Public are associated (or correlated) with Central Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Retail has no effect on the direction of Union Plastic i.e., Union Plastic and Central Retail go up and down completely randomly.
Pair Corralation between Union Plastic and Central Retail
Assuming the 90 days horizon Union Plastic Public is expected to under-perform the Central Retail. But the stock apears to be less risky and, when comparing its historical volatility, Union Plastic Public is 1.06 times less risky than Central Retail. The stock trades about -0.02 of its potential returns per unit of risk. The Central Retail is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,400 in Central Retail on October 20, 2024 and sell it today you would earn a total of 50.00 from holding Central Retail or generate 1.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Union Plastic Public vs. Central Retail
Performance |
| Timeline |
| Union Plastic Public |
| Central Retail |
Union Plastic and Central Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Plastic and Central Retail
The main advantage of trading using opposite Union Plastic and Central Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Plastic position performs unexpectedly, Central Retail 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 Central Retail will offset losses from the drop in Central Retail's long position.| Union Plastic vs. Thai Poly Acrylic | Union Plastic vs. Union Pioneer Public | Union Plastic vs. Univentures Public | Union Plastic vs. Thantawan Industry Public |
| Central Retail vs. Moshi Moshi Retail | Central Retail vs. Ekarat Engineering Public | Central Retail vs. VGI Public | Central Retail vs. Kasikornbank 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| 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 |