Correlation Between RPCG Public and Super Energy
Can any of the company-specific risk be diversified away by investing in both RPCG Public and Super Energy 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 RPCG Public and Super Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RPCG Public and Super Energy, you can compare the effects of market volatilities on RPCG Public and Super Energy 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 RPCG Public with a short position of Super Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of RPCG Public and Super Energy.
Diversification Opportunities for RPCG Public and Super Energy
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between RPCG and Super is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding RPCG Public and Super Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Energy and RPCG Public 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 RPCG Public are associated (or correlated) with Super Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Energy has no effect on the direction of RPCG Public i.e., RPCG Public and Super Energy go up and down completely randomly.
Pair Corralation between RPCG Public and Super Energy
Assuming the 90 days trading horizon RPCG Public is expected to under-perform the Super Energy. But the stock apears to be less risky and, when comparing its historical volatility, RPCG Public is 1.07 times less risky than Super Energy. The stock trades about -0.16 of its potential returns per unit of risk. The Super Energy is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Super Energy on September 4, 2024 and sell it today you would lose (1.00) from holding Super Energy or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
RPCG Public vs. Super Energy
Performance |
| Timeline |
| RPCG Public |
| Super Energy |
RPCG Public and Super Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RPCG Public and Super Energy
The main advantage of trading using opposite RPCG Public and Super Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RPCG Public position performs unexpectedly, Super Energy 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 Super Energy will offset losses from the drop in Super Energy's long position.| RPCG Public vs. PTT Public | RPCG Public vs. SCB X Public | RPCG Public vs. The Siam Commercial | RPCG Public vs. The Siam Cement |
| Super Energy vs. Bangchak Public | Super Energy vs. Gulf Energy Development | Super Energy vs. Bangkok Expressway and | Super Energy vs. BGrimm Power 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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |