Correlation Between G Capital and Sub Sri

Can any of the company-specific risk be diversified away by investing in both G Capital and Sub Sri 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 G Capital and Sub Sri into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for G Capital and Sub Sri

-0.59

Correlation Coefficient

G Capital  Sub Sri

Excellent diversification

The 3 months correlation between GCAP and Sub is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding G Capital Public and Sub Sri Thai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sub Sri Thai and G Capital 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 G Capital Public are associated (or correlated) with Sub Sri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sub Sri Thai has no effect on the direction of G Capital i.e., G Capital and Sub Sri go up and down completely randomly.

Pair Corralation between G Capital and Sub Sri

Assuming the 90 days trading horizon G Capital Public is expected to generate 5.34 times more return on investment than Sub Sri. However, G Capital is 5.34 times more volatile than Sub Sri Thai. It trades about -0.01 of its potential returns per unit of risk. Sub Sri Thai is currently generating about -0.08 per unit of risk. If you would invest  30.00  in G Capital Public on April 23, 2025 and sell it today you would lose (2.00) from holding G Capital Public or give up 6.67% of portfolio value over 90 days.

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

G Capital Public  vs.  Sub Sri Thai

G Capital Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days G Capital Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, G Capital is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Sub Sri Thai

Risk-Adjusted Performance

Very Weak

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

Pair Trading with G Capital and Sub Sri

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

The idea behind G Capital Public and Sub Sri Thai 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 CEOs Directory module to screen CEOs from public companies around the world.