Correlation Between North East and Singer Thailand
Can any of the company-specific risk be diversified away by investing in both North East and Singer Thailand 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 North East and Singer Thailand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between North East Rubbers and Singer Thailand Public, you can compare the effects of market volatilities on North East and Singer Thailand 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 North East with a short position of Singer Thailand. Check out your portfolio center. Please also check ongoing floating volatility patterns of North East and Singer Thailand.
Diversification Opportunities for North East and Singer Thailand
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between North and Singer is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding North East Rubbers and Singer Thailand Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singer Thailand Public and North East 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 North East Rubbers are associated (or correlated) with Singer Thailand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singer Thailand Public has no effect on the direction of North East i.e., North East and Singer Thailand go up and down completely randomly.
Pair Corralation between North East and Singer Thailand
Assuming the 90 days trading horizon North East Rubbers is expected to generate 0.39 times more return on investment than Singer Thailand. However, North East Rubbers is 2.58 times less risky than Singer Thailand. It trades about -0.16 of its potential returns per unit of risk. Singer Thailand Public is currently generating about -0.38 per unit of risk. If you would invest 496.00 in North East Rubbers on August 28, 2024 and sell it today you would lose (18.00) from holding North East Rubbers or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
North East Rubbers vs. Singer Thailand Public
Performance |
| Timeline |
| North East Rubbers |
| Singer Thailand Public |
North East and Singer Thailand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North East and Singer Thailand
The main advantage of trading using opposite North East and Singer Thailand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North East position performs unexpectedly, Singer Thailand 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 Singer Thailand will offset losses from the drop in Singer Thailand's long position.| North East vs. NCL International Logistics | North East vs. The Erawan Group | North East vs. Airports of Thailand | North East vs. Eastern Technical Engineering |
| Singer Thailand vs. SCB X Public | Singer Thailand vs. Kasikornbank Public | Singer Thailand vs. PTT Public | Singer Thailand vs. Kasikornbank 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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