Correlation Between Singha Estate and AP Public
Can any of the company-specific risk be diversified away by investing in both Singha Estate and AP Public 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 Singha Estate and AP Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singha Estate Public and AP Public, you can compare the effects of market volatilities on Singha Estate and AP Public 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 Singha Estate with a short position of AP Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singha Estate and AP Public.
Diversification Opportunities for Singha Estate and AP Public
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Singha and AP Public is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Singha Estate Public and AP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Public and Singha Estate 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 Singha Estate Public are associated (or correlated) with AP Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Public has no effect on the direction of Singha Estate i.e., Singha Estate and AP Public go up and down completely randomly.
Pair Corralation between Singha Estate and AP Public
Given the investment horizon of 90 days Singha Estate Public is expected to generate 27.79 times more return on investment than AP Public. However, Singha Estate is 27.79 times more volatile than AP Public. It trades about 0.04 of its potential returns per unit of risk. AP Public is currently generating about -0.03 per unit of risk. If you would invest 197.00 in Singha Estate Public on October 23, 2024 and sell it today you would lose (126.00) from holding Singha Estate Public or give up 63.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singha Estate Public vs. AP Public
Performance |
| Timeline |
| Singha Estate Public |
| AP Public |
Singha Estate and AP Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singha Estate and AP Public
The main advantage of trading using opposite Singha Estate and AP Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singha Estate position performs unexpectedly, AP Public 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 AP Public will offset losses from the drop in AP Public's long position.| Singha Estate vs. Siri Prime Office | Singha Estate vs. WHA Public | Singha Estate vs. Supalai Public | Singha Estate vs. Quality Houses Public |
| AP Public vs. Land and Houses | AP Public vs. Quality Houses Public | AP Public vs. Bangkok Bank Public | AP Public vs. Siri Prime Office |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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