Correlation Between Regional Container and Sabuy Technology
Can any of the company-specific risk be diversified away by investing in both Regional Container and Sabuy Technology 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 Sabuy Technology 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 Sabuy Technology Public, you can compare the effects of market volatilities on Regional Container and Sabuy Technology 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 Sabuy Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regional Container and Sabuy Technology.
Diversification Opportunities for Regional Container and Sabuy Technology
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regional and Sabuy is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Regional Container Lines and Sabuy Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabuy Technology 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 Sabuy Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabuy Technology Public has no effect on the direction of Regional Container i.e., Regional Container and Sabuy Technology go up and down completely randomly.
Pair Corralation between Regional Container and Sabuy Technology
Assuming the 90 days trading horizon Regional Container is expected to generate 137.26 times less return on investment than Sabuy Technology. But when comparing it to its historical volatility, Regional Container Lines is 25.0 times less risky than Sabuy Technology. It trades about 0.01 of its potential returns per unit of risk. Sabuy Technology Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 148.00 in Sabuy Technology Public on September 1, 2024 and sell it today you would lose (97.00) from holding Sabuy Technology Public or give up 65.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regional Container Lines vs. Sabuy Technology Public
Performance |
| Timeline |
| Regional Container Lines |
| Sabuy Technology Public |
Regional Container and Sabuy Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regional Container and Sabuy Technology
The main advantage of trading using opposite Regional Container and Sabuy Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regional Container position performs unexpectedly, Sabuy Technology 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 Sabuy Technology will offset losses from the drop in Sabuy Technology's long position.| Regional Container vs. Precious Shipping Public | Regional Container vs. Thoresen Thai Agencies | Regional Container vs. The Siam Cement | Regional Container vs. PTT Public |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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