Correlation Between Univentures Public and Vanachai Group

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

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

Diversification Opportunities for Univentures Public and Vanachai Group

0.63

Correlation Coefficient

Univentures Public  Vanachai Group

Poor diversification

The 3 months correlation between Univentures and Vanachai is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Univentures Public and Vanachai Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanachai Group Public and Univentures 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 Univentures Public are associated (or correlated) with Vanachai Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanachai Group Public has no effect on the direction of Univentures Public i.e., Univentures Public and Vanachai Group go up and down completely randomly.

Pair Corralation between Univentures Public and Vanachai Group

Assuming the 90 days horizon Univentures Public is expected to generate 1.92 times more return on investment than Vanachai Group. However, Univentures Public is 1.92 times more volatile than Vanachai Group Public. It trades about -0.01 of its potential returns per unit of risk. Vanachai Group Public is currently generating about -0.37 per unit of risk. If you would invest  150.00  in Univentures Public on September 24, 2024 and sell it today you would lose (1.00) from holding Univentures Public or give up 0.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Univentures Public  vs.  Vanachai Group Public

Univentures Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Univentures Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Vanachai Group Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vanachai Group Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Univentures Public and Vanachai Group

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

The idea behind Univentures Public and Vanachai Group Public 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.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.