Correlation Between Electricity Generating and SG Capital
Can any of the company-specific risk be diversified away by investing in both Electricity Generating and SG Capital 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 Electricity Generating and SG Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electricity Generating Public and SG Capital PCL, you can compare the effects of market volatilities on Electricity Generating and SG Capital 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 Electricity Generating with a short position of SG Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electricity Generating and SG Capital.
Diversification Opportunities for Electricity Generating and SG Capital
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Electricity and SGC is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Electricity Generating Public and SG Capital PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SG Capital PCL and Electricity Generating 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 Electricity Generating Public are associated (or correlated) with SG Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SG Capital PCL has no effect on the direction of Electricity Generating i.e., Electricity Generating and SG Capital go up and down completely randomly.
Pair Corralation between Electricity Generating and SG Capital
Assuming the 90 days trading horizon Electricity Generating Public is expected to generate 0.41 times more return on investment than SG Capital. However, Electricity Generating Public is 2.44 times less risky than SG Capital. It trades about 0.01 of its potential returns per unit of risk. SG Capital PCL is currently generating about -0.18 per unit of risk. If you would invest 11,900 in Electricity Generating Public on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Electricity Generating Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electricity Generating Public vs. SG Capital PCL
Performance |
| Timeline |
| Electricity Generating |
| SG Capital PCL |
Electricity Generating and SG Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electricity Generating and SG Capital
The main advantage of trading using opposite Electricity Generating and SG Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electricity Generating position performs unexpectedly, SG Capital 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 SG Capital will offset losses from the drop in SG Capital's long position.| Electricity Generating vs. The Siam Cement | Electricity Generating vs. CP ALL Public | Electricity Generating vs. Intouch Holdings Public | Electricity Generating vs. PTT Public |
| SG Capital vs. Delta Electronics Public | SG Capital vs. Delta Electronics Public | SG Capital vs. Airports of Thailand | SG Capital vs. Airports of Thailand |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |