Correlation Between Triple I and Sonic Interfreight
Can any of the company-specific risk be diversified away by investing in both Triple I and Sonic Interfreight 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 Triple I and Sonic Interfreight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Triple i Logistics and Sonic Interfreight Public, you can compare the effects of market volatilities on Triple I and Sonic Interfreight 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 Triple I with a short position of Sonic Interfreight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triple I and Sonic Interfreight.
Diversification Opportunities for Triple I and Sonic Interfreight
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Triple and Sonic is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Triple i Logistics and Sonic Interfreight Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sonic Interfreight Public and Triple I 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 Triple i Logistics are associated (or correlated) with Sonic Interfreight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sonic Interfreight Public has no effect on the direction of Triple I i.e., Triple I and Sonic Interfreight go up and down completely randomly.
Pair Corralation between Triple I and Sonic Interfreight
Assuming the 90 days trading horizon Triple i Logistics is expected to generate 34.88 times more return on investment than Sonic Interfreight. However, Triple I is 34.88 times more volatile than Sonic Interfreight Public. It trades about 0.05 of its potential returns per unit of risk. Sonic Interfreight Public is currently generating about 0.0 per unit of risk. If you would invest 968.00 in Triple i Logistics on September 2, 2024 and sell it today you would lose (398.00) from holding Triple i Logistics or give up 41.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Triple i Logistics vs. Sonic Interfreight Public
Performance |
| Timeline |
| Triple i Logistics |
| Sonic Interfreight Public |
Triple I and Sonic Interfreight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Triple I and Sonic Interfreight
The main advantage of trading using opposite Triple I and Sonic Interfreight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Triple I position performs unexpectedly, Sonic Interfreight 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 Sonic Interfreight will offset losses from the drop in Sonic Interfreight's long position.| Triple I vs. Gulf Energy Development | Triple I vs. Energy Absolute Public | Triple I vs. WHA Public | Triple I vs. Bangkok Expressway and |
| Sonic Interfreight vs. Kerry Express Public | Sonic Interfreight vs. Triple i Logistics | Sonic Interfreight vs. WICE Logistics 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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