Correlation Between Clover Power and Srinanaporn Marketing
Can any of the company-specific risk be diversified away by investing in both Clover Power and Srinanaporn Marketing 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 Clover Power and Srinanaporn Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clover Power PCL and Srinanaporn Marketing Public, you can compare the effects of market volatilities on Clover Power and Srinanaporn Marketing 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 Clover Power with a short position of Srinanaporn Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clover Power and Srinanaporn Marketing.
Diversification Opportunities for Clover Power and Srinanaporn Marketing
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Clover and Srinanaporn is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Clover Power PCL and Srinanaporn Marketing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srinanaporn Marketing and Clover Power 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 Clover Power PCL are associated (or correlated) with Srinanaporn Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srinanaporn Marketing has no effect on the direction of Clover Power i.e., Clover Power and Srinanaporn Marketing go up and down completely randomly.
Pair Corralation between Clover Power and Srinanaporn Marketing
Assuming the 90 days horizon Clover Power PCL is expected to under-perform the Srinanaporn Marketing. In addition to that, Clover Power is 2.08 times more volatile than Srinanaporn Marketing Public. It trades about -0.2 of its total potential returns per unit of risk. Srinanaporn Marketing Public is currently generating about -0.14 per unit of volatility. If you would invest 1,340 in Srinanaporn Marketing Public on August 28, 2024 and sell it today you would lose (150.00) from holding Srinanaporn Marketing Public or give up 11.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clover Power PCL vs. Srinanaporn Marketing Public
Performance |
| Timeline |
| Clover Power PCL |
| Srinanaporn Marketing |
Clover Power and Srinanaporn Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clover Power and Srinanaporn Marketing
The main advantage of trading using opposite Clover Power and Srinanaporn Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clover Power position performs unexpectedly, Srinanaporn Marketing 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 Srinanaporn Marketing will offset losses from the drop in Srinanaporn Marketing's long position.| Clover Power vs. Delta Electronics Public | Clover Power vs. Delta Electronics Public | Clover Power vs. Airports of Thailand | Clover Power vs. Airports of Thailand |
| Srinanaporn Marketing vs. Chamni Eye PCL | Srinanaporn Marketing vs. Siam Global House | Srinanaporn Marketing vs. The Erawan Group | Srinanaporn Marketing vs. Ditto 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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