Correlation Between Berli Jucker and Saha Pathana
Can any of the company-specific risk be diversified away by investing in both Berli Jucker and Saha Pathana 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 Berli Jucker and Saha Pathana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berli Jucker Public and Saha Pathana Inter Holding, you can compare the effects of market volatilities on Berli Jucker and Saha Pathana 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 Berli Jucker with a short position of Saha Pathana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berli Jucker and Saha Pathana.
Diversification Opportunities for Berli Jucker and Saha Pathana
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Berli and Saha is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Berli Jucker Public and Saha Pathana Inter Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saha Pathana Inter and Berli Jucker 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 Berli Jucker Public are associated (or correlated) with Saha Pathana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saha Pathana Inter has no effect on the direction of Berli Jucker i.e., Berli Jucker and Saha Pathana go up and down completely randomly.
Pair Corralation between Berli Jucker and Saha Pathana
Assuming the 90 days trading horizon Berli Jucker Public is expected to under-perform the Saha Pathana. In addition to that, Berli Jucker is 1.48 times more volatile than Saha Pathana Inter Holding. It trades about -0.18 of its total potential returns per unit of risk. Saha Pathana Inter Holding is currently generating about -0.24 per unit of volatility. If you would invest 6,250 in Saha Pathana Inter Holding on October 20, 2024 and sell it today you would lose (350.00) from holding Saha Pathana Inter Holding or give up 5.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Berli Jucker Public vs. Saha Pathana Inter Holding
Performance |
| Timeline |
| Berli Jucker Public |
| Saha Pathana Inter |
Berli Jucker and Saha Pathana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berli Jucker and Saha Pathana
The main advantage of trading using opposite Berli Jucker and Saha Pathana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berli Jucker position performs unexpectedly, Saha Pathana 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 Saha Pathana will offset losses from the drop in Saha Pathana's long position.| Berli Jucker vs. Khon Kaen Sugar | Berli Jucker vs. Lam Soon Public | Berli Jucker vs. Lee Feed Mill | Berli Jucker vs. Bangkok Ranch PCL |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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