Correlation Between Regional Container and Sawang Export
Can any of the company-specific risk be diversified away by investing in both Regional Container and Sawang Export 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 Regional Container and Sawang Export into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regional Container Lines and Sawang Export Public, you can compare the effects of market volatilities on Regional Container and Sawang Export 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 Regional Container with a short position of Sawang Export. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regional Container and Sawang Export.
Diversification Opportunities for Regional Container and Sawang Export
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Regional and Sawang is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Regional Container Lines and Sawang Export Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sawang Export Public and Regional Container 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 Regional Container Lines are associated (or correlated) with Sawang Export. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sawang Export Public has no effect on the direction of Regional Container i.e., Regional Container and Sawang Export go up and down completely randomly.
Pair Corralation between Regional Container and Sawang Export
Assuming the 90 days trading horizon Regional Container Lines is expected to generate 1.34 times more return on investment than Sawang Export. However, Regional Container is 1.34 times more volatile than Sawang Export Public. It trades about 0.24 of its potential returns per unit of risk. Sawang Export Public is currently generating about -0.02 per unit of risk. If you would invest 2,408 in Regional Container Lines on September 3, 2024 and sell it today you would earn a total of 417.00 from holding Regional Container Lines or generate 17.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regional Container Lines vs. Sawang Export Public
Performance |
| Timeline |
| Regional Container Lines |
| Sawang Export Public |
Regional Container and Sawang Export Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regional Container and Sawang Export
The main advantage of trading using opposite Regional Container and Sawang Export positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regional Container position performs unexpectedly, Sawang Export 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 Sawang Export will offset losses from the drop in Sawang Export's long position.| Regional Container vs. Sun Vending Technology | Regional Container vs. Sri panwa Hospitality | Regional Container vs. Bumrungrad Hospital Public | Regional Container vs. Bioscience Animal Health |
| Sawang Export vs. Sabina Public | Sawang Export vs. Rockworth Public | Sawang Export vs. Thaitheparos Public | Sawang Export vs. Sappe 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |