Correlation Between Dimet Public and Srisawad Power

Can any of the company-specific risk be diversified away by investing in both Dimet Public and Srisawad Power 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 Dimet Public and Srisawad Power into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dimet Public and Srisawad Power 1979, you can compare the effects of market volatilities on Dimet Public and Srisawad Power 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 Dimet Public with a short position of Srisawad Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dimet Public and Srisawad Power.

Diversification Opportunities for Dimet Public and Srisawad Power

0.14

Correlation Coefficient

Dimet Public  Srisawad Power

Average diversification

The 3 months correlation between Dimet and Srisawad is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Dimet Public and Srisawad Power 1979 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srisawad Power 1979 and Dimet 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 Dimet Public are associated (or correlated) with Srisawad Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srisawad Power 1979 has no effect on the direction of Dimet Public i.e., Dimet Public and Srisawad Power go up and down completely randomly.

Pair Corralation between Dimet Public and Srisawad Power

Assuming the 90 days trading horizon Dimet Public is expected to under-perform the Srisawad Power. In addition to that, Dimet Public is 1.18 times more volatile than Srisawad Power 1979. It trades about -0.02 of its total potential returns per unit of risk. Srisawad Power 1979 is currently generating about 0.05 per unit of volatility. If you would invest  3,900  in Srisawad Power 1979 on September 4, 2024 and sell it today you would earn a total of  200.00  from holding Srisawad Power 1979 or generate 5.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Dimet Public  vs.  Srisawad Power 1979

Dimet Public

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Dimet Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Dimet Public is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Srisawad Power 1979

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Srisawad Power 1979 are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Srisawad Power may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Dimet Public and Srisawad Power

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

The idea behind Dimet Public and Srisawad Power 1979 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.