Correlation Between Vichitbhan Palmoil and Eastern Polymer
Can any of the company-specific risk be diversified away by investing in both Vichitbhan Palmoil and Eastern Polymer 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 Vichitbhan Palmoil and Eastern Polymer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vichitbhan Palmoil Public and Eastern Polymer Group, you can compare the effects of market volatilities on Vichitbhan Palmoil and Eastern Polymer 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 Vichitbhan Palmoil with a short position of Eastern Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vichitbhan Palmoil and Eastern Polymer.
Diversification Opportunities for Vichitbhan Palmoil and Eastern Polymer
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vichitbhan and Eastern is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Vichitbhan Palmoil Public and Eastern Polymer Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Polymer Group and Vichitbhan Palmoil 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 Vichitbhan Palmoil Public are associated (or correlated) with Eastern Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Polymer Group has no effect on the direction of Vichitbhan Palmoil i.e., Vichitbhan Palmoil and Eastern Polymer go up and down completely randomly.
Pair Corralation between Vichitbhan Palmoil and Eastern Polymer
Assuming the 90 days trading horizon Vichitbhan Palmoil Public is expected to generate 20.46 times more return on investment than Eastern Polymer. However, Vichitbhan Palmoil is 20.46 times more volatile than Eastern Polymer Group. It trades about 0.04 of its potential returns per unit of risk. Eastern Polymer Group is currently generating about -0.07 per unit of risk. If you would invest 119.00 in Vichitbhan Palmoil Public on November 2, 2024 and sell it today you would lose (61.00) from holding Vichitbhan Palmoil Public or give up 51.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Vichitbhan Palmoil Public vs. Eastern Polymer Group
Performance |
| Timeline |
| Vichitbhan Palmoil Public |
| Eastern Polymer Group |
Vichitbhan Palmoil and Eastern Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vichitbhan Palmoil and Eastern Polymer
The main advantage of trading using opposite Vichitbhan Palmoil and Eastern Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vichitbhan Palmoil position performs unexpectedly, Eastern Polymer 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 Eastern Polymer will offset losses from the drop in Eastern Polymer's long position.| Vichitbhan Palmoil vs. Chumporn Palm Oil | Vichitbhan Palmoil vs. Taokaenoi Food Marketing | Vichitbhan Palmoil vs. Tata Steel Public | Vichitbhan Palmoil vs. Wave Entertainment Public |
| Eastern Polymer vs. AP Public | Eastern Polymer vs. CK Power Public | Eastern Polymer vs. Gunkul Engineering Public | Eastern Polymer vs. Indorama Ventures PCL |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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