Correlation Between IRPC Public and Susco Public
Can any of the company-specific risk be diversified away by investing in both IRPC Public and Susco Public 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 IRPC Public and Susco Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IRPC Public and Susco Public, you can compare the effects of market volatilities on IRPC Public and Susco Public 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 IRPC Public with a short position of Susco Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of IRPC Public and Susco Public.
Diversification Opportunities for IRPC Public and Susco Public
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between IRPC and Susco is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding IRPC Public and Susco Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Susco Public and IRPC Public 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 IRPC Public are associated (or correlated) with Susco Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Susco Public has no effect on the direction of IRPC Public i.e., IRPC Public and Susco Public go up and down completely randomly.
Pair Corralation between IRPC Public and Susco Public
Assuming the 90 days trading horizon IRPC Public is expected to under-perform the Susco Public. In addition to that, IRPC Public is 1.48 times more volatile than Susco Public. It trades about -0.05 of its total potential returns per unit of risk. Susco Public is currently generating about -0.03 per unit of volatility. If you would invest 302.00 in Susco Public on September 13, 2024 and sell it today you would lose (2.00) from holding Susco Public or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
IRPC Public vs. Susco Public
Performance |
| Timeline |
| IRPC Public |
| Susco Public |
IRPC Public and Susco Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IRPC Public and Susco Public
The main advantage of trading using opposite IRPC Public and Susco Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IRPC Public position performs unexpectedly, Susco Public 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 Susco Public will offset losses from the drop in Susco Public's long position.The idea behind IRPC Public and Susco Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Susco Public vs. Bangchak Public | Susco Public vs. IRPC Public | Susco Public vs. PTT Exploration and | Susco Public vs. PTG Energy 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 Stocks Directory module to find actively traded stocks across global markets.
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