Correlation Between Rabbit Holdings and SP Syndicate
Can any of the company-specific risk be diversified away by investing in both Rabbit Holdings and SP Syndicate 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 Rabbit Holdings and SP Syndicate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rabbit Holdings PCL and SP Syndicate Public, you can compare the effects of market volatilities on Rabbit Holdings and SP Syndicate 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 Rabbit Holdings with a short position of SP Syndicate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rabbit Holdings and SP Syndicate.
Diversification Opportunities for Rabbit Holdings and SP Syndicate
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Rabbit and SNP is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Rabbit Holdings PCL and SP Syndicate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Syndicate Public and Rabbit Holdings 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 Rabbit Holdings PCL are associated (or correlated) with SP Syndicate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Syndicate Public has no effect on the direction of Rabbit Holdings i.e., Rabbit Holdings and SP Syndicate go up and down completely randomly.
Pair Corralation between Rabbit Holdings and SP Syndicate
Assuming the 90 days trading horizon Rabbit Holdings PCL is expected to generate 2.92 times more return on investment than SP Syndicate. However, Rabbit Holdings is 2.92 times more volatile than SP Syndicate Public. It trades about 0.0 of its potential returns per unit of risk. SP Syndicate Public is currently generating about -0.11 per unit of risk. If you would invest 47.00 in Rabbit Holdings PCL on November 3, 2024 and sell it today you would lose (5.00) from holding Rabbit Holdings PCL or give up 10.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Rabbit Holdings PCL vs. SP Syndicate Public
Performance |
| Timeline |
| Rabbit Holdings PCL |
| SP Syndicate Public |
Rabbit Holdings and SP Syndicate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rabbit Holdings and SP Syndicate
The main advantage of trading using opposite Rabbit Holdings and SP Syndicate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rabbit Holdings position performs unexpectedly, SP Syndicate 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 SP Syndicate will offset losses from the drop in SP Syndicate's long position.| Rabbit Holdings vs. VGI Public | Rabbit Holdings vs. CH Karnchang Public | Rabbit Holdings vs. SG Capital PCL | Rabbit Holdings vs. i Tail Corp PCL |
| SP Syndicate vs. Thai Vegetable Oil | SP Syndicate vs. MK Restaurant Group | SP Syndicate vs. Thaitheparos 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |