Correlation Between Asia Green and SAF Special
Can any of the company-specific risk be diversified away by investing in both Asia Green and SAF Special 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 Asia Green and SAF Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Green Energy and SAF Special Steel, you can compare the effects of market volatilities on Asia Green and SAF Special 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 Asia Green with a short position of SAF Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Green and SAF Special.
Diversification Opportunities for Asia Green and SAF Special
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Asia and SAF is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Asia Green Energy and SAF Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAF Special Steel and Asia Green 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 Asia Green Energy are associated (or correlated) with SAF Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAF Special Steel has no effect on the direction of Asia Green i.e., Asia Green and SAF Special go up and down completely randomly.
Pair Corralation between Asia Green and SAF Special
Assuming the 90 days trading horizon Asia Green Energy is expected to under-perform the SAF Special. But the stock apears to be less risky and, when comparing its historical volatility, Asia Green Energy is 5.92 times less risky than SAF Special. The stock trades about -0.47 of its potential returns per unit of risk. The SAF Special Steel is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 56.00 in SAF Special Steel on September 4, 2024 and sell it today you would lose (4.00) from holding SAF Special Steel or give up 7.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Green Energy vs. SAF Special Steel
Performance |
| Timeline |
| Asia Green Energy |
| SAF Special Steel |
Asia Green and SAF Special Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Green and SAF Special
The main advantage of trading using opposite Asia Green and SAF Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Green position performs unexpectedly, SAF Special 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 SAF Special will offset losses from the drop in SAF Special's long position.| Asia Green vs. AP Public | Asia Green vs. Banpu Public | Asia Green vs. Chularat Hospital Public | Asia Green vs. Bangkok Chain Hospital |
| SAF Special vs. Diamond Building Products | SAF Special vs. MCS Steel Public | SAF Special vs. Asia Green Energy | SAF Special vs. Hwa Fong Rubber |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |