Correlation Between Regional Container and SKijchai Enterprise
Can any of the company-specific risk be diversified away by investing in both Regional Container and SKijchai Enterprise 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 SKijchai Enterprise 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 SKijchai Enterprise Public, you can compare the effects of market volatilities on Regional Container and SKijchai Enterprise 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 SKijchai Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regional Container and SKijchai Enterprise.
Diversification Opportunities for Regional Container and SKijchai Enterprise
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regional and SKijchai is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Regional Container Lines and SKijchai Enterprise Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKijchai Enterprise 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 SKijchai Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKijchai Enterprise has no effect on the direction of Regional Container i.e., Regional Container and SKijchai Enterprise go up and down completely randomly.
Pair Corralation between Regional Container and SKijchai Enterprise
Assuming the 90 days trading horizon Regional Container is expected to generate 19.1 times less return on investment than SKijchai Enterprise. But when comparing it to its historical volatility, Regional Container Lines is 19.27 times less risky than SKijchai Enterprise. It trades about 0.06 of its potential returns per unit of risk. SKijchai Enterprise Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 405.00 in SKijchai Enterprise Public on September 12, 2024 and sell it today you would earn a total of 130.00 from holding SKijchai Enterprise Public or generate 32.1% 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. SKijchai Enterprise Public
Performance |
| Timeline |
| Regional Container Lines |
| SKijchai Enterprise |
Regional Container and SKijchai Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regional Container and SKijchai Enterprise
The main advantage of trading using opposite Regional Container and SKijchai Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regional Container position performs unexpectedly, SKijchai Enterprise 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 SKijchai Enterprise will offset losses from the drop in SKijchai Enterprise's long position.| Regional Container vs. Tata Steel Public | Regional Container vs. TTCL Public | Regional Container vs. Thaifoods Group Public | Regional Container vs. TMT Steel Public |
| SKijchai Enterprise vs. Tata Steel Public | SKijchai Enterprise vs. TTCL Public | SKijchai Enterprise vs. Thaifoods Group Public | SKijchai Enterprise vs. TMT Steel 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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