Correlation Between CAZ Public and Sabuy Technology
Can any of the company-specific risk be diversified away by investing in both CAZ Public and Sabuy Technology 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 CAZ Public and Sabuy Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CAZ Public and Sabuy Technology Public, you can compare the effects of market volatilities on CAZ Public and Sabuy Technology 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 CAZ Public with a short position of Sabuy Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CAZ Public and Sabuy Technology.
Diversification Opportunities for CAZ Public and Sabuy Technology
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CAZ and Sabuy is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding CAZ Public and Sabuy Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabuy Technology Public and CAZ Public 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 CAZ Public are associated (or correlated) with Sabuy Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabuy Technology Public has no effect on the direction of CAZ Public i.e., CAZ Public and Sabuy Technology go up and down completely randomly.
Pair Corralation between CAZ Public and Sabuy Technology
Assuming the 90 days trading horizon CAZ Public is expected to generate 0.99 times more return on investment than Sabuy Technology. However, CAZ Public is 1.01 times less risky than Sabuy Technology. It trades about 0.05 of its potential returns per unit of risk. Sabuy Technology Public is currently generating about 0.04 per unit of risk. If you would invest 344.00 in CAZ Public on September 12, 2024 and sell it today you would lose (120.00) from holding CAZ Public or give up 34.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CAZ Public vs. Sabuy Technology Public
Performance |
| Timeline |
| CAZ Public |
| Sabuy Technology Public |
CAZ Public and Sabuy Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CAZ Public and Sabuy Technology
The main advantage of trading using opposite CAZ Public and Sabuy Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CAZ Public position performs unexpectedly, Sabuy Technology 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 Sabuy Technology will offset losses from the drop in Sabuy Technology's long position.| CAZ Public vs. Sabuy Technology Public | CAZ Public vs. Takuni Group Public | CAZ Public vs. SVI Public | CAZ Public vs. The Erawan Group |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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