Correlation Between Cal Comp and SVOA Public
Can any of the company-specific risk be diversified away by investing in both Cal Comp and SVOA Public 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 Cal Comp and SVOA Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cal Comp Electronics Public and SVOA Public, you can compare the effects of market volatilities on Cal Comp and SVOA Public 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 Cal Comp with a short position of SVOA Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cal Comp and SVOA Public.
Diversification Opportunities for Cal Comp and SVOA Public
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cal and SVOA is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Cal Comp Electronics Public and SVOA Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVOA Public and Cal Comp 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 Cal Comp Electronics Public are associated (or correlated) with SVOA Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVOA Public has no effect on the direction of Cal Comp i.e., Cal Comp and SVOA Public go up and down completely randomly.
Pair Corralation between Cal Comp and SVOA Public
Assuming the 90 days trading horizon Cal Comp is expected to generate 4.92 times less return on investment than SVOA Public. But when comparing it to its historical volatility, Cal Comp Electronics Public is 13.62 times less risky than SVOA Public. It trades about 0.15 of its potential returns per unit of risk. SVOA Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 188.00 in SVOA Public on September 4, 2024 and sell it today you would lose (65.00) from holding SVOA Public or give up 34.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Cal Comp Electronics Public vs. SVOA Public
Performance |
| Timeline |
| Cal Comp Electronics |
| SVOA Public |
Cal Comp and SVOA Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cal Comp and SVOA Public
The main advantage of trading using opposite Cal Comp and SVOA Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cal Comp position performs unexpectedly, SVOA Public 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 SVOA Public will offset losses from the drop in SVOA Public's long position.| Cal Comp vs. KCE Electronics Public | Cal Comp vs. Land and Houses | Cal Comp vs. The Siam Cement | Cal Comp vs. Bangkok Bank Public |
| SVOA Public vs. KCE Electronics Public | SVOA Public vs. Land and Houses | SVOA Public vs. The Siam Cement | SVOA Public vs. Bangkok Bank Public |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |