Correlation Between Exotic Food and Praram 9
Can any of the company-specific risk be diversified away by investing in both Exotic Food and Praram 9 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 Exotic Food and Praram 9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exotic Food Public and Praram 9 Hospital, you can compare the effects of market volatilities on Exotic Food and Praram 9 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 Exotic Food with a short position of Praram 9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exotic Food and Praram 9.
Diversification Opportunities for Exotic Food and Praram 9
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Exotic and Praram is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Exotic Food Public and Praram 9 Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praram 9 Hospital and Exotic Food 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 Exotic Food Public are associated (or correlated) with Praram 9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praram 9 Hospital has no effect on the direction of Exotic Food i.e., Exotic Food and Praram 9 go up and down completely randomly.
Pair Corralation between Exotic Food and Praram 9
Assuming the 90 days horizon Exotic Food Public is expected to generate 0.79 times more return on investment than Praram 9. However, Exotic Food Public is 1.27 times less risky than Praram 9. It trades about -0.01 of its potential returns per unit of risk. Praram 9 Hospital is currently generating about -0.03 per unit of risk. If you would invest 1,860 in Exotic Food Public on November 27, 2024 and sell it today you would lose (10.00) from holding Exotic Food Public or give up 0.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exotic Food Public vs. Praram 9 Hospital
Performance |
| Timeline |
| Exotic Food Public |
| Praram 9 Hospital |
Exotic Food and Praram 9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exotic Food and Praram 9
The main advantage of trading using opposite Exotic Food and Praram 9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exotic Food position performs unexpectedly, Praram 9 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 Praram 9 will offset losses from the drop in Praram 9's long position.| Exotic Food vs. Mega Lifesciences Public | Exotic Food vs. Com7 PCL | Exotic Food vs. Thai Union Group | Exotic Food vs. Jay Mart Public |
| Praram 9 vs. Bangkok Dusit Medical | Praram 9 vs. Bumrungrad Hospital PCL | Praram 9 vs. Bangkok Chain Hospital | Praram 9 vs. Rajthanee Hospital 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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