Correlation Between PINTHONG INDUSTRIAL and SC Asset
Can any of the company-specific risk be diversified away by investing in both PINTHONG INDUSTRIAL and SC Asset 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 PINTHONG INDUSTRIAL and SC Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PINTHONG INDUSTRIAL PARK and SC Asset, you can compare the effects of market volatilities on PINTHONG INDUSTRIAL and SC Asset 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 PINTHONG INDUSTRIAL with a short position of SC Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of PINTHONG INDUSTRIAL and SC Asset.
Diversification Opportunities for PINTHONG INDUSTRIAL and SC Asset
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PINTHONG and SC Asset is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding PINTHONG INDUSTRIAL PARK and SC Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SC Asset and PINTHONG INDUSTRIAL 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 PINTHONG INDUSTRIAL PARK are associated (or correlated) with SC Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SC Asset has no effect on the direction of PINTHONG INDUSTRIAL i.e., PINTHONG INDUSTRIAL and SC Asset go up and down completely randomly.
Pair Corralation between PINTHONG INDUSTRIAL and SC Asset
Assuming the 90 days trading horizon PINTHONG INDUSTRIAL is expected to generate 65.17 times less return on investment than SC Asset. But when comparing it to its historical volatility, PINTHONG INDUSTRIAL PARK is 29.72 times less risky than SC Asset. It trades about 0.04 of its potential returns per unit of risk. SC Asset is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 293.00 in SC Asset on September 3, 2024 and sell it today you would lose (5.00) from holding SC Asset or give up 1.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PINTHONG INDUSTRIAL PARK vs. SC Asset
Performance |
| Timeline |
| PINTHONG INDUSTRIAL PARK |
| SC Asset |
PINTHONG INDUSTRIAL and SC Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PINTHONG INDUSTRIAL and SC Asset
The main advantage of trading using opposite PINTHONG INDUSTRIAL and SC Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PINTHONG INDUSTRIAL position performs unexpectedly, SC Asset 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 SC Asset will offset losses from the drop in SC Asset's long position.| PINTHONG INDUSTRIAL vs. Peace Living PCL | PINTHONG INDUSTRIAL vs. The Platinum Group | PINTHONG INDUSTRIAL vs. Property Perfect Public | PINTHONG INDUSTRIAL vs. Siamese Asset Public |
| SC Asset vs. Pato Chemical Industry | SC Asset vs. KTBST Mixed Leasehold | SC Asset vs. Saksiam Leasing Public | SC Asset vs. PINTHONG INDUSTRIAL PARK |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |