Correlation Between Lee Feed and Sermsuk Public
Can any of the company-specific risk be diversified away by investing in both Lee Feed and Sermsuk 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 Lee Feed and Sermsuk Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lee Feed Mill and Sermsuk Public, you can compare the effects of market volatilities on Lee Feed and Sermsuk 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 Lee Feed with a short position of Sermsuk Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lee Feed and Sermsuk Public.
Diversification Opportunities for Lee Feed and Sermsuk Public
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Lee and Sermsuk is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding Lee Feed Mill and Sermsuk Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sermsuk Public and Lee Feed 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 Lee Feed Mill are associated (or correlated) with Sermsuk Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sermsuk Public has no effect on the direction of Lee Feed i.e., Lee Feed and Sermsuk Public go up and down completely randomly.
Pair Corralation between Lee Feed and Sermsuk Public
Assuming the 90 days trading horizon Lee Feed Mill is expected to under-perform the Sermsuk Public. In addition to that, Lee Feed is 3.61 times more volatile than Sermsuk Public. It trades about -0.26 of its total potential returns per unit of risk. Sermsuk Public is currently generating about 0.0 per unit of volatility. If you would invest 6,300 in Sermsuk Public on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Sermsuk Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lee Feed Mill vs. Sermsuk Public
Performance |
| Timeline |
| Lee Feed Mill |
| Sermsuk Public |
Lee Feed and Sermsuk Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lee Feed and Sermsuk Public
The main advantage of trading using opposite Lee Feed and Sermsuk Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lee Feed position performs unexpectedly, Sermsuk 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 Sermsuk Public will offset losses from the drop in Sermsuk Public's long position.| Lee Feed vs. GFPT Public | Lee Feed vs. KGI Securities Public | Lee Feed vs. Thai Vegetable Oil | Lee Feed vs. Lam Soon 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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