Correlation Between S Khonkaen and Bhiraj Office

Can any of the company-specific risk be diversified away by investing in both S Khonkaen and Bhiraj Office 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 S Khonkaen and Bhiraj Office into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between S Khonkaen Foods and Bhiraj Office Leasehold, you can compare the effects of market volatilities on S Khonkaen and Bhiraj Office 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 S Khonkaen with a short position of Bhiraj Office. Check out your portfolio center. Please also check ongoing floating volatility patterns of S Khonkaen and Bhiraj Office.

Diversification Opportunities for S Khonkaen and Bhiraj Office

-0.57

Correlation Coefficient

S Khonkaen  Bhiraj Office

Excellent diversification

The 3 months correlation between SORKON and Bhiraj is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding S Khonkaen Foods and Bhiraj Office Leasehold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bhiraj Office Leasehold and S Khonkaen 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 S Khonkaen Foods are associated (or correlated) with Bhiraj Office. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bhiraj Office Leasehold has no effect on the direction of S Khonkaen i.e., S Khonkaen and Bhiraj Office go up and down completely randomly.

Pair Corralation between S Khonkaen and Bhiraj Office

Assuming the 90 days trading horizon S Khonkaen Foods is expected to generate 0.73 times more return on investment than Bhiraj Office. However, S Khonkaen Foods is 1.36 times less risky than Bhiraj Office. It trades about -0.04 of its potential returns per unit of risk. Bhiraj Office Leasehold is currently generating about -0.17 per unit of risk. If you would invest  430.00  in S Khonkaen Foods on October 10, 2024 and sell it today you would lose (2.00) from holding S Khonkaen Foods or give up 0.47% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

S Khonkaen Foods  vs.  Bhiraj Office Leasehold

S Khonkaen Foods

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days S Khonkaen Foods has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, S Khonkaen is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Bhiraj Office Leasehold

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bhiraj Office Leasehold are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Bhiraj Office is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with S Khonkaen and Bhiraj Office

The main advantage of trading using opposite S Khonkaen and Bhiraj Office positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S Khonkaen position performs unexpectedly, Bhiraj Office 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 Bhiraj Office will offset losses from the drop in Bhiraj Office's long position.

The idea behind S Khonkaen Foods and Bhiraj Office Leasehold pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.