Correlation Between Com7 PCL and SKijchai Enterprise
Can any of the company-specific risk be diversified away by investing in both Com7 PCL and SKijchai Enterprise 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 Com7 PCL and SKijchai Enterprise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Com7 PCL and SKijchai Enterprise Public, you can compare the effects of market volatilities on Com7 PCL and SKijchai Enterprise 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 Com7 PCL with a short position of SKijchai Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Com7 PCL and SKijchai Enterprise.
Diversification Opportunities for Com7 PCL and SKijchai Enterprise
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Com7 and SKijchai is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Com7 PCL and SKijchai Enterprise Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKijchai Enterprise and Com7 PCL 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 Com7 PCL are associated (or correlated) with SKijchai Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKijchai Enterprise has no effect on the direction of Com7 PCL i.e., Com7 PCL and SKijchai Enterprise go up and down completely randomly.
Pair Corralation between Com7 PCL and SKijchai Enterprise
Assuming the 90 days trading horizon Com7 PCL is expected to under-perform the SKijchai Enterprise. In addition to that, Com7 PCL is 1.12 times more volatile than SKijchai Enterprise Public. It trades about -0.25 of its total potential returns per unit of risk. SKijchai Enterprise Public is currently generating about 0.0 per unit of volatility. If you would invest 545.00 in SKijchai Enterprise Public on November 4, 2024 and sell it today you would lose (5.00) from holding SKijchai Enterprise Public or give up 0.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Com7 PCL vs. SKijchai Enterprise Public
Performance |
| Timeline |
| Com7 PCL |
| SKijchai Enterprise |
Com7 PCL and SKijchai Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Com7 PCL and SKijchai Enterprise
The main advantage of trading using opposite Com7 PCL and SKijchai Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Com7 PCL position performs unexpectedly, SKijchai Enterprise 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 SKijchai Enterprise will offset losses from the drop in SKijchai Enterprise's long position.| Com7 PCL vs. CP ALL Public | Com7 PCL vs. Home Product Center | Com7 PCL vs. Minor International Public | Com7 PCL vs. Bangkok Dusit Medical |
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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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