Correlation Between AEON Thana and Sikarin Public
Can any of the company-specific risk be diversified away by investing in both AEON Thana and Sikarin Public 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 AEON Thana and Sikarin Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON Thana Sinsap and Sikarin Public, you can compare the effects of market volatilities on AEON Thana and Sikarin Public 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 AEON Thana with a short position of Sikarin Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON Thana and Sikarin Public.
Diversification Opportunities for AEON Thana and Sikarin Public
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between AEON and Sikarin is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding AEON Thana Sinsap and Sikarin Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sikarin Public and AEON Thana 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 AEON Thana Sinsap are associated (or correlated) with Sikarin Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sikarin Public has no effect on the direction of AEON Thana i.e., AEON Thana and Sikarin Public go up and down completely randomly.
Pair Corralation between AEON Thana and Sikarin Public
Assuming the 90 days trading horizon AEON Thana Sinsap is expected to under-perform the Sikarin Public. In addition to that, AEON Thana is 2.13 times more volatile than Sikarin Public. It trades about -0.19 of its total potential returns per unit of risk. Sikarin Public is currently generating about 0.09 per unit of volatility. If you would invest 925.00 in Sikarin Public on September 5, 2024 and sell it today you would earn a total of 15.00 from holding Sikarin Public or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON Thana Sinsap vs. Sikarin Public
Performance |
| Timeline |
| AEON Thana Sinsap |
| Sikarin Public |
AEON Thana and Sikarin Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON Thana and Sikarin Public
The main advantage of trading using opposite AEON Thana and Sikarin Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON Thana position performs unexpectedly, Sikarin Public 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 Sikarin Public will offset losses from the drop in Sikarin Public's long position.| AEON Thana vs. Thai Steel Cable | AEON Thana vs. Tropical Canning Public | AEON Thana vs. RB Food Supply | AEON Thana vs. Eureka Design Public |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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