Correlation Between Fine Metal and SC Asset
Can any of the company-specific risk be diversified away by investing in both Fine Metal and SC Asset 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 Fine Metal and SC Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fine Metal Technologies and SC Asset, you can compare the effects of market volatilities on Fine Metal and SC Asset 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 Fine Metal with a short position of SC Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fine Metal and SC Asset.
Diversification Opportunities for Fine Metal and SC Asset
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fine and SC Asset is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fine Metal Technologies and SC Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SC Asset and Fine Metal 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 Fine Metal Technologies are associated (or correlated) with SC Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SC Asset has no effect on the direction of Fine Metal i.e., Fine Metal and SC Asset go up and down completely randomly.
Pair Corralation between Fine Metal and SC Asset
Assuming the 90 days trading horizon Fine Metal Technologies is expected to generate 1.0 times more return on investment than SC Asset. However, Fine Metal Technologies is 1.0 times less risky than SC Asset. It trades about 0.04 of its potential returns per unit of risk. SC Asset is currently generating about 0.04 per unit of risk. If you would invest 2,686 in Fine Metal Technologies on September 14, 2024 and sell it today you would earn a total of 564.00 from holding Fine Metal Technologies or generate 21.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fine Metal Technologies vs. SC Asset
Performance |
Timeline |
Fine Metal Technologies |
SC Asset |
Fine Metal and SC Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fine Metal and SC Asset
The main advantage of trading using opposite Fine Metal and SC Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fine Metal position performs unexpectedly, SC Asset 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 SC Asset will offset losses from the drop in SC Asset's long position.Fine Metal vs. GFPT Public | Fine Metal vs. Kulthorn Kirby Public | Fine Metal vs. Chumporn Palm Oil | Fine Metal vs. Haad Thip Public |
SC Asset vs. Indara Insurance Public | SC Asset vs. Syntec Construction Public | SC Asset vs. WHA Industrial Leasehold | SC Asset vs. Teka Construction PCL |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |