Correlation Between Quality Houses and SCG PACKAGING
Can any of the company-specific risk be diversified away by investing in both Quality Houses and SCG PACKAGING 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 Quality Houses and SCG PACKAGING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quality Houses Property and SCG PACKAGING PCL NVDR, you can compare the effects of market volatilities on Quality Houses and SCG PACKAGING 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 Quality Houses with a short position of SCG PACKAGING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quality Houses and SCG PACKAGING.
Diversification Opportunities for Quality Houses and SCG PACKAGING
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Quality and SCG is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Quality Houses Property and SCG PACKAGING PCL NVDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCG PACKAGING PCL and Quality Houses 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 Quality Houses Property are associated (or correlated) with SCG PACKAGING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCG PACKAGING PCL has no effect on the direction of Quality Houses i.e., Quality Houses and SCG PACKAGING go up and down completely randomly.
Pair Corralation between Quality Houses and SCG PACKAGING
Assuming the 90 days trading horizon Quality Houses Property is expected to under-perform the SCG PACKAGING. In addition to that, Quality Houses is 8.03 times more volatile than SCG PACKAGING PCL NVDR. It trades about -0.24 of its total potential returns per unit of risk. SCG PACKAGING PCL NVDR is currently generating about -0.19 per unit of volatility. If you would invest 1,661 in SCG PACKAGING PCL NVDR on November 27, 2024 and sell it today you would lose (178.00) from holding SCG PACKAGING PCL NVDR or give up 10.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quality Houses Property vs. SCG PACKAGING PCL NVDR
Performance |
| Timeline |
| Quality Houses Property |
| SCG PACKAGING PCL |
Quality Houses and SCG PACKAGING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quality Houses and SCG PACKAGING
The main advantage of trading using opposite Quality Houses and SCG PACKAGING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quality Houses position performs unexpectedly, SCG PACKAGING 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 SCG PACKAGING will offset losses from the drop in SCG PACKAGING's long position.| Quality Houses vs. LH Shopping Centers | Quality Houses vs. LH Hotel Leasehold | Quality Houses vs. Future Park Leasehold | Quality Houses vs. CPN Retail Growth |
| SCG PACKAGING vs. PTT Public | SCG PACKAGING vs. Kasikornbank Public | SCG PACKAGING vs. The Siam Cement | SCG PACKAGING vs. OSOTSPA PCL NVDR |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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