Correlation Between PRG Public and SCB X
Can any of the company-specific risk be diversified away by investing in both PRG Public 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 PRG Public and SCB X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PRG Public and SCB X Public, you can compare the effects of market volatilities on PRG Public 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 PRG Public with a short position of SCB X. Check out your portfolio center. Please also check ongoing floating volatility patterns of PRG Public and SCB X.
Diversification Opportunities for PRG Public and SCB X
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PRG and SCB is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding PRG Public 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 PRG Public 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 PRG Public 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 PRG Public i.e., PRG Public and SCB X go up and down completely randomly.
Pair Corralation between PRG Public and SCB X
Assuming the 90 days trading horizon PRG Public is expected to under-perform the SCB X. But the stock apears to be less risky and, when comparing its historical volatility, PRG Public is 1.72 times less risky than SCB X. The stock trades about -0.05 of its potential returns per unit of risk. The SCB X Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 11,350 in SCB X Public on August 24, 2024 and sell it today you would earn a total of 100.00 from holding SCB X Public or generate 0.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
PRG Public vs. SCB X Public
Performance |
| Timeline |
| PRG Public |
| SCB X Public |
PRG Public and SCB X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PRG Public and SCB X
The main advantage of trading using opposite PRG Public and SCB X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PRG Public 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.| PRG Public vs. CP ALL Public | PRG Public vs. Carabao Group Public | PRG Public vs. Thai Union Group | PRG Public vs. Minor International Public |
| SCB X vs. Thai Energy Storage | SCB X vs. Royal Orchid Hotel | SCB X vs. Grand Canal Land | SCB X vs. PRG 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stocks Directory Find actively traded stocks across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |