Correlation Between Grande Hospitality and Erawan
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By analyzing existing cross correlation between Grande Hospitality Real and The Erawan Group, you can compare the effects of market volatilities on Grande Hospitality and Erawan 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 Grande Hospitality with a short position of Erawan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grande Hospitality and Erawan.
Diversification Opportunities for Grande Hospitality and Erawan
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grande and Erawan is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Grande Hospitality Real and The Erawan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Erawan Group and Grande Hospitality 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 Grande Hospitality Real are associated (or correlated) with Erawan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Erawan Group has no effect on the direction of Grande Hospitality i.e., Grande Hospitality and Erawan go up and down completely randomly.
Pair Corralation between Grande Hospitality and Erawan
Assuming the 90 days trading horizon Grande Hospitality Real is expected to under-perform the Erawan. But the stock apears to be less risky and, when comparing its historical volatility, Grande Hospitality Real is 2.06 times less risky than Erawan. The stock trades about -0.02 of its potential returns per unit of risk. The The Erawan Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 374.00 in The Erawan Group on September 4, 2024 and sell it today you would earn a total of 36.00 from holding The Erawan Group or generate 9.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Grande Hospitality Real vs. The Erawan Group
Performance |
Timeline |
Grande Hospitality Real |
Erawan Group |
Grande Hospitality and Erawan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grande Hospitality and Erawan
The main advantage of trading using opposite Grande Hospitality and Erawan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grande Hospitality position performs unexpectedly, Erawan 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 Erawan will offset losses from the drop in Erawan's long position.Grande Hospitality vs. Asia Metal Public | Grande Hospitality vs. Turnkey Communication Services | Grande Hospitality vs. Teka Construction PCL | Grande Hospitality vs. Communication System Solution |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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