Correlation Between Land and SCB X
Can any of the company-specific risk be diversified away by investing in both Land 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 Land and SCB X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Land and Houses and SCB X Public, you can compare the effects of market volatilities on Land 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 Land with a short position of SCB X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Land and SCB X.
Diversification Opportunities for Land and SCB X
Very good diversification
The 3 months correlation between Land and SCB is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Land and Houses 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 Land 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 Land and Houses 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 Land i.e., Land and SCB X go up and down completely randomly.
Pair Corralation between Land and SCB X
Assuming the 90 days horizon Land and Houses is expected to under-perform the SCB X. In addition to that, Land is 1.6 times more volatile than SCB X Public. It trades about -0.06 of its total potential returns per unit of risk. SCB X Public is currently generating about 0.08 per unit of volatility. If you would invest 10,353 in SCB X Public on August 31, 2024 and sell it today you would earn a total of 1,097 from holding SCB X Public or generate 10.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Land and Houses vs. SCB X Public
Performance |
| Timeline |
| Land and Houses |
| SCB X Public |
Land and SCB X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Land and SCB X
The main advantage of trading using opposite Land and SCB X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Land 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.The idea behind Land and Houses and SCB X 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.| SCB X vs. Bangkok Dusit Medical | SCB X vs. Bank of Ayudhya | SCB X vs. KTBST Mixed Leasehold | SCB X vs. TISCO Financial Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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