Correlation Between Haad Thip and SCG PACKAGING
Can any of the company-specific risk be diversified away by investing in both Haad Thip and SCG PACKAGING 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 Haad Thip and SCG PACKAGING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haad Thip Public and SCG PACKAGING PCL NVDR, you can compare the effects of market volatilities on Haad Thip and SCG PACKAGING 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 Haad Thip with a short position of SCG PACKAGING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haad Thip and SCG PACKAGING.
Diversification Opportunities for Haad Thip and SCG PACKAGING
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Haad and SCG is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Haad Thip Public and SCG PACKAGING PCL NVDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCG PACKAGING PCL and Haad Thip 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 Haad Thip Public are associated (or correlated) with SCG PACKAGING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCG PACKAGING PCL has no effect on the direction of Haad Thip i.e., Haad Thip and SCG PACKAGING go up and down completely randomly.
Pair Corralation between Haad Thip and SCG PACKAGING
Assuming the 90 days trading horizon Haad Thip Public is expected to generate 0.18 times more return on investment than SCG PACKAGING. However, Haad Thip Public is 5.64 times less risky than SCG PACKAGING. It trades about -0.09 of its potential returns per unit of risk. SCG PACKAGING PCL NVDR is currently generating about -0.26 per unit of risk. If you would invest 1,670 in Haad Thip Public on September 1, 2024 and sell it today you would lose (50.00) from holding Haad Thip Public or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haad Thip Public vs. SCG PACKAGING PCL NVDR
Performance |
| Timeline |
| Haad Thip Public |
| SCG PACKAGING PCL |
Haad Thip and SCG PACKAGING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haad Thip and SCG PACKAGING
The main advantage of trading using opposite Haad Thip and SCG PACKAGING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haad Thip position performs unexpectedly, SCG PACKAGING 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 SCG PACKAGING will offset losses from the drop in SCG PACKAGING's long position.| Haad Thip vs. Charoen Pokphand Foods | Haad Thip vs. Carabao Group Public | Haad Thip vs. Home Product Center | Haad Thip vs. Ichitan Group Public |
| SCG PACKAGING vs. PTT Public | SCG PACKAGING vs. Kasikornbank Public | SCG PACKAGING vs. The Siam Cement | SCG PACKAGING vs. OSOTSPA PCL NVDR |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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