Correlation Between Lalin Property and SCB X
Can any of the company-specific risk be diversified away by investing in both Lalin Property and SCB X 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 Lalin Property and SCB X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lalin Property Public and SCB X Public, you can compare the effects of market volatilities on Lalin Property and SCB X 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 Lalin Property with a short position of SCB X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lalin Property and SCB X.
Diversification Opportunities for Lalin Property and SCB X
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lalin and SCB is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Lalin Property Public and SCB X Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCB X Public and Lalin Property 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 Lalin Property Public are associated (or correlated) with SCB X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCB X Public has no effect on the direction of Lalin Property i.e., Lalin Property and SCB X go up and down completely randomly.
Pair Corralation between Lalin Property and SCB X
Assuming the 90 days trading horizon Lalin Property Public is expected to under-perform the SCB X. In addition to that, Lalin Property is 1.34 times more volatile than SCB X Public. It trades about -0.05 of its total potential returns per unit of risk. SCB X Public is currently generating about 0.34 per unit of volatility. If you would invest 11,350 in SCB X Public on September 13, 2024 and sell it today you would earn a total of 450.00 from holding SCB X Public or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lalin Property Public vs. SCB X Public
Performance |
| Timeline |
| Lalin Property Public |
| SCB X Public |
Lalin Property and SCB X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lalin Property and SCB X
The main advantage of trading using opposite Lalin Property and SCB X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lalin Property position performs unexpectedly, SCB X 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 SCB X will offset losses from the drop in SCB X's long position.| Lalin Property vs. Wave Entertainment Public | Lalin Property vs. Vibhavadi Medical Center | Lalin Property vs. VGI Public | Lalin Property vs. WHA Public |
| SCB X vs. KGI Securities Public | SCB X vs. Lalin Property Public | SCB X vs. Hwa Fong Rubber | SCB X vs. MCS Steel Public |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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