Correlation Between Nova Organic and Saksiam Leasing
Can any of the company-specific risk be diversified away by investing in both Nova Organic and Saksiam Leasing 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 Nova Organic and Saksiam Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nova Organic PCL and Saksiam Leasing Public, you can compare the effects of market volatilities on Nova Organic and Saksiam Leasing 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 Nova Organic with a short position of Saksiam Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nova Organic and Saksiam Leasing.
Diversification Opportunities for Nova Organic and Saksiam Leasing
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nova and Saksiam is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Nova Organic PCL and Saksiam Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saksiam Leasing Public and Nova Organic 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 Nova Organic PCL are associated (or correlated) with Saksiam Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saksiam Leasing Public has no effect on the direction of Nova Organic i.e., Nova Organic and Saksiam Leasing go up and down completely randomly.
Pair Corralation between Nova Organic and Saksiam Leasing
Assuming the 90 days horizon Nova Organic PCL is expected to under-perform the Saksiam Leasing. But the stock apears to be less risky and, when comparing its historical volatility, Nova Organic PCL is 1.51 times less risky than Saksiam Leasing. The stock trades about -0.43 of its potential returns per unit of risk. The Saksiam Leasing Public is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 545.00 in Saksiam Leasing Public on August 29, 2024 and sell it today you would lose (20.00) from holding Saksiam Leasing Public or give up 3.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nova Organic PCL vs. Saksiam Leasing Public
Performance |
| Timeline |
| Nova Organic PCL |
| Saksiam Leasing Public |
Nova Organic and Saksiam Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nova Organic and Saksiam Leasing
The main advantage of trading using opposite Nova Organic and Saksiam Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nova Organic position performs unexpectedly, Saksiam Leasing 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 Saksiam Leasing will offset losses from the drop in Saksiam Leasing's long position.| Nova Organic vs. Chamni Eye PCL | Nova Organic vs. Siam Global House | Nova Organic vs. The Erawan Group | Nova Organic vs. Ditto Public |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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