Correlation Between RB Food and Asia Sermkij
Can any of the company-specific risk be diversified away by investing in both RB Food and Asia Sermkij 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 RB Food and Asia Sermkij into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RB Food Supply and Asia Sermkij Leasing, you can compare the effects of market volatilities on RB Food and Asia Sermkij 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 RB Food with a short position of Asia Sermkij. Check out your portfolio center. Please also check ongoing floating volatility patterns of RB Food and Asia Sermkij.
Diversification Opportunities for RB Food and Asia Sermkij
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between RBF and Asia is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding RB Food Supply and Asia Sermkij Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Sermkij Leasing and RB Food 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 RB Food Supply are associated (or correlated) with Asia Sermkij. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Sermkij Leasing has no effect on the direction of RB Food i.e., RB Food and Asia Sermkij go up and down completely randomly.
Pair Corralation between RB Food and Asia Sermkij
Assuming the 90 days trading horizon RB Food Supply is expected to generate 1.46 times more return on investment than Asia Sermkij. However, RB Food is 1.46 times more volatile than Asia Sermkij Leasing. It trades about 0.25 of its potential returns per unit of risk. Asia Sermkij Leasing is currently generating about -0.15 per unit of risk. If you would invest 555.00 in RB Food Supply on September 5, 2024 and sell it today you would earn a total of 100.00 from holding RB Food Supply or generate 18.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RB Food Supply vs. Asia Sermkij Leasing
Performance |
| Timeline |
| RB Food Supply |
| Asia Sermkij Leasing |
RB Food and Asia Sermkij Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RB Food and Asia Sermkij
The main advantage of trading using opposite RB Food and Asia Sermkij positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RB Food position performs unexpectedly, Asia Sermkij 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 Asia Sermkij will offset losses from the drop in Asia Sermkij's long position.| RB Food vs. Osotspa Public | RB Food vs. Thai Union Group | RB Food vs. Carabao Group Public | RB Food vs. PTG Energy PCL |
| Asia Sermkij vs. Thai Steel Cable | Asia Sermkij vs. Tropical Canning Public | Asia Sermkij vs. RB Food Supply | Asia Sermkij vs. Eureka Design 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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