Correlation Between Sims Metal and CHAROEN POKPHAND
Can any of the company-specific risk be diversified away by investing in both Sims Metal and CHAROEN POKPHAND 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 Sims Metal and CHAROEN POKPHAND into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sims Metal Management and CHAROEN POKPHAND, you can compare the effects of market volatilities on Sims Metal and CHAROEN POKPHAND 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 Sims Metal with a short position of CHAROEN POKPHAND. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sims Metal and CHAROEN POKPHAND.
Diversification Opportunities for Sims Metal and CHAROEN POKPHAND
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sims and CHAROEN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sims Metal Management and CHAROEN POKPHAND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHAROEN POKPHAND and Sims 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 Sims Metal Management are associated (or correlated) with CHAROEN POKPHAND. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHAROEN POKPHAND has no effect on the direction of Sims Metal i.e., Sims Metal and CHAROEN POKPHAND go up and down completely randomly.
Pair Corralation between Sims Metal and CHAROEN POKPHAND
If you would invest (100.00) in CHAROEN POKPHAND on October 15, 2024 and sell it today you would earn a total of 100.00 from holding CHAROEN POKPHAND or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sims Metal Management vs. CHAROEN POKPHAND
Performance |
| Timeline |
| Sims Metal Management |
| CHAROEN POKPHAND |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sims Metal and CHAROEN POKPHAND Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sims Metal and CHAROEN POKPHAND
The main advantage of trading using opposite Sims Metal and CHAROEN POKPHAND positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sims Metal position performs unexpectedly, CHAROEN POKPHAND 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 CHAROEN POKPHAND will offset losses from the drop in CHAROEN POKPHAND's long position.| Sims Metal vs. EMBARK EDUCATION LTD | Sims Metal vs. SALESFORCE INC CDR | Sims Metal vs. Tradeweb Markets | Sims Metal vs. TRADELINK ELECTRON |
| CHAROEN POKPHAND vs. SWISS WATER DECAFFCOFFEE | CHAROEN POKPHAND vs. OBSERVE MEDICAL ASA | CHAROEN POKPHAND vs. VARIOUS EATERIES LS | CHAROEN POKPHAND vs. SCANSOURCE |
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.
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