Correlation Between Workpoint Entertainment and Rojana Industrial
Can any of the company-specific risk be diversified away by investing in both Workpoint Entertainment 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 Workpoint Entertainment and Rojana Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Workpoint Entertainment Public and Rojana Industrial Park, you can compare the effects of market volatilities on Workpoint Entertainment 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 Workpoint Entertainment with a short position of Rojana Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Workpoint Entertainment and Rojana Industrial.
Diversification Opportunities for Workpoint Entertainment and Rojana Industrial
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Workpoint and Rojana is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Workpoint Entertainment Public 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 Workpoint Entertainment 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 Workpoint Entertainment Public 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 Workpoint Entertainment i.e., Workpoint Entertainment and Rojana Industrial go up and down completely randomly.
Pair Corralation between Workpoint Entertainment and Rojana Industrial
Assuming the 90 days trading horizon Workpoint Entertainment Public is expected to under-perform the Rojana Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Workpoint Entertainment Public is 1.09 times less risky than Rojana Industrial. The stock trades about -0.42 of its potential returns per unit of risk. The Rojana Industrial Park is currently generating about -0.26 of returns per unit of risk over similar time horizon. If you would invest 615.00 in Rojana Industrial Park on October 20, 2024 and sell it today you would lose (55.00) from holding Rojana Industrial Park or give up 8.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Workpoint Entertainment Public vs. Rojana Industrial Park
Performance |
| Timeline |
| Workpoint Entertainment |
| Rojana Industrial Park |
Workpoint Entertainment and Rojana Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Workpoint Entertainment and Rojana Industrial
The main advantage of trading using opposite Workpoint Entertainment and Rojana Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Workpoint Entertainment 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.| Workpoint Entertainment vs. Siamgas and Petrochemicals | Workpoint Entertainment vs. Namyong Terminal PCL | Workpoint Entertainment vs. MCOT Public | Workpoint Entertainment vs. The Erawan Group |
| Rojana Industrial vs. Ratch Group Public | Rojana Industrial vs. RPCG Public | Rojana Industrial vs. Siam City Cement | Rojana Industrial vs. Siamgas and Petrochemicals |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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