Correlation Between Chewathai Public and Cho Thavee
Can any of the company-specific risk be diversified away by investing in both Chewathai Public and Cho Thavee 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 Chewathai Public and Cho Thavee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chewathai Public and Cho Thavee Public, you can compare the effects of market volatilities on Chewathai Public and Cho Thavee 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 Chewathai Public with a short position of Cho Thavee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chewathai Public and Cho Thavee.
Diversification Opportunities for Chewathai Public and Cho Thavee
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chewathai and Cho is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Chewathai Public and Cho Thavee Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cho Thavee Public and Chewathai Public 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 Chewathai Public are associated (or correlated) with Cho Thavee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cho Thavee Public has no effect on the direction of Chewathai Public i.e., Chewathai Public and Cho Thavee go up and down completely randomly.
Pair Corralation between Chewathai Public and Cho Thavee
If you would invest 5.00 in Cho Thavee Public on December 1, 2024 and sell it today you would lose (2.00) from holding Cho Thavee Public or give up 40.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Chewathai Public vs. Cho Thavee Public
Performance |
Timeline |
Chewathai Public |
Cho Thavee Public |
Chewathai Public and Cho Thavee Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chewathai Public and Cho Thavee
The main advantage of trading using opposite Chewathai Public and Cho Thavee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chewathai Public position performs unexpectedly, Cho Thavee 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 Cho Thavee will offset losses from the drop in Cho Thavee's long position.Chewathai Public vs. Cho Thavee Public | Chewathai Public vs. East Coast Furnitech | Chewathai Public vs. Hydrotek Public | Chewathai Public vs. Chularat Hospital Public |
Cho Thavee vs. Chewathai Public | Cho Thavee vs. Filter Vision Public | Cho Thavee vs. G Capital Public | Cho Thavee vs. Demco 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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