Correlation Between Union Auction and SiS Distribution
Can any of the company-specific risk be diversified away by investing in both Union Auction and SiS Distribution 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 Union Auction and SiS Distribution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Union Auction Public and SiS Distribution Public, you can compare the effects of market volatilities on Union Auction and SiS Distribution 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 Union Auction with a short position of SiS Distribution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Union Auction and SiS Distribution.
Diversification Opportunities for Union Auction and SiS Distribution
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Union and SiS is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Union Auction Public and SiS Distribution Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SiS Distribution Public and Union Auction 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 Union Auction Public are associated (or correlated) with SiS Distribution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SiS Distribution Public has no effect on the direction of Union Auction i.e., Union Auction and SiS Distribution go up and down completely randomly.
Pair Corralation between Union Auction and SiS Distribution
Assuming the 90 days trading horizon Union Auction Public is expected to under-perform the SiS Distribution. But the stock apears to be less risky and, when comparing its historical volatility, Union Auction Public is 3.75 times less risky than SiS Distribution. The stock trades about -0.45 of its potential returns per unit of risk. The SiS Distribution Public is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,500 in SiS Distribution Public on August 29, 2024 and sell it today you would earn a total of 450.00 from holding SiS Distribution Public or generate 18.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Union Auction Public vs. SiS Distribution Public
Performance |
| Timeline |
| Union Auction Public |
| SiS Distribution Public |
Union Auction and SiS Distribution Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Union Auction and SiS Distribution
The main advantage of trading using opposite Union Auction and SiS Distribution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Union Auction position performs unexpectedly, SiS Distribution 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 SiS Distribution will offset losses from the drop in SiS Distribution's long position.| Union Auction vs. AP Public | Union Auction vs. Carabao Group Public | Union Auction vs. Forth Smart Service | Union Auction vs. Com7 PCL |
| SiS Distribution vs. AP Public | SiS Distribution vs. Jasmine International Public | SiS Distribution vs. Asia Plus Group | SiS Distribution vs. Bangkok Aviation Fuel |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |