Correlation Between Alphanam and SMC Investment
Can any of the company-specific risk be diversified away by investing in both Alphanam and SMC Investment 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 Alphanam and SMC Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphanam ME and SMC Investment Trading, you can compare the effects of market volatilities on Alphanam and SMC Investment 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 Alphanam with a short position of SMC Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphanam and SMC Investment.
Diversification Opportunities for Alphanam and SMC Investment
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Alphanam and SMC is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Alphanam ME and SMC Investment Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SMC Investment Trading and Alphanam 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 Alphanam ME are associated (or correlated) with SMC Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SMC Investment Trading has no effect on the direction of Alphanam i.e., Alphanam and SMC Investment go up and down completely randomly.
Pair Corralation between Alphanam and SMC Investment
Assuming the 90 days trading horizon Alphanam ME is expected to under-perform the SMC Investment. In addition to that, Alphanam is 1.12 times more volatile than SMC Investment Trading. It trades about -0.1 of its total potential returns per unit of risk. SMC Investment Trading is currently generating about -0.03 per unit of volatility. If you would invest 1,035,000 in SMC Investment Trading on October 12, 2024 and sell it today you would lose (269,000) from holding SMC Investment Trading or give up 25.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 51.87% |
| Values | Daily Returns |
Alphanam ME vs. SMC Investment Trading
Performance |
| Timeline |
| Alphanam ME |
| SMC Investment Trading |
Alphanam and SMC Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphanam and SMC Investment
The main advantage of trading using opposite Alphanam and SMC Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphanam position performs unexpectedly, SMC Investment 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 SMC Investment will offset losses from the drop in SMC Investment's long position.| Alphanam vs. Hanoi Plastics JSC | Alphanam vs. Din Capital Investment | Alphanam vs. Danang Rubber JSC | Alphanam vs. Southern Rubber Industry |
| SMC Investment vs. Elcom Technology Communications | SMC Investment vs. Petrolimex Petrochemical JSC | SMC Investment vs. Pha Le Plastics | SMC Investment vs. Sao Vang 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |