Correlation Between Regional Container and Asia Sermkij
Can any of the company-specific risk be diversified away by investing in both Regional Container 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 Regional Container and Asia Sermkij 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 Asia Sermkij Leasing, you can compare the effects of market volatilities on Regional Container 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 Regional Container with a short position of Asia Sermkij. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regional Container and Asia Sermkij.
Diversification Opportunities for Regional Container and Asia Sermkij
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Regional and Asia is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Regional Container Lines 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 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 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 Regional Container i.e., Regional Container and Asia Sermkij go up and down completely randomly.
Pair Corralation between Regional Container and Asia Sermkij
Assuming the 90 days trading horizon Regional Container Lines is expected to generate 1.64 times more return on investment than Asia Sermkij. However, Regional Container is 1.64 times more volatile than Asia Sermkij Leasing. It trades about 0.07 of its potential returns per unit of risk. Asia Sermkij Leasing is currently generating about -0.32 per unit of risk. If you would invest 2,478 in Regional Container Lines on August 28, 2024 and sell it today you would earn a total of 97.00 from holding Regional Container Lines or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regional Container Lines vs. Asia Sermkij Leasing
Performance |
| Timeline |
| Regional Container Lines |
| Asia Sermkij Leasing |
Regional Container and Asia Sermkij Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regional Container and Asia Sermkij
The main advantage of trading using opposite Regional Container and Asia Sermkij positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regional Container 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.| Regional Container vs. Tata Steel Public | Regional Container vs. Thaifoods Group Public | Regional Container vs. TMT Steel Public | Regional Container vs. The Erawan Group |
| Asia Sermkij vs. AP Public | Asia Sermkij vs. Kiatnakin Phatra Bank | Asia Sermkij vs. TISCO Financial Group | Asia Sermkij vs. Carabao Group 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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