Correlation Between Sao Ta and Telecoms Informatics
Can any of the company-specific risk be diversified away by investing in both Sao Ta and Telecoms Informatics 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 Sao Ta and Telecoms Informatics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sao Ta Foods and Telecoms Informatics JSC, you can compare the effects of market volatilities on Sao Ta and Telecoms Informatics 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 Sao Ta with a short position of Telecoms Informatics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sao Ta and Telecoms Informatics.
Diversification Opportunities for Sao Ta and Telecoms Informatics
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sao and Telecoms is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Sao Ta Foods and Telecoms Informatics JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telecoms Informatics JSC and Sao Ta 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 Sao Ta Foods are associated (or correlated) with Telecoms Informatics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telecoms Informatics JSC has no effect on the direction of Sao Ta i.e., Sao Ta and Telecoms Informatics go up and down completely randomly.
Pair Corralation between Sao Ta and Telecoms Informatics
Assuming the 90 days trading horizon Sao Ta is expected to generate 1.4 times less return on investment than Telecoms Informatics. But when comparing it to its historical volatility, Sao Ta Foods is 3.52 times less risky than Telecoms Informatics. It trades about 0.13 of its potential returns per unit of risk. Telecoms Informatics JSC is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,250,000 in Telecoms Informatics JSC on August 29, 2024 and sell it today you would earn a total of 30,000 from holding Telecoms Informatics JSC or generate 2.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sao Ta Foods vs. Telecoms Informatics JSC
Performance |
| Timeline |
| Sao Ta Foods |
| Telecoms Informatics JSC |
Sao Ta and Telecoms Informatics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sao Ta and Telecoms Informatics
The main advantage of trading using opposite Sao Ta and Telecoms Informatics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sao Ta position performs unexpectedly, Telecoms Informatics 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 Telecoms Informatics will offset losses from the drop in Telecoms Informatics' long position.| Sao Ta vs. FIT INVEST JSC | Sao Ta vs. Damsan JSC | Sao Ta vs. An Phat Plastic | Sao Ta vs. APG Securities Joint |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global 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 | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |