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
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Singha and AP Public is 0.75. 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 under-perform the AP Public. But the stock apears to be less risky and, when comparing its historical volatility, Singha Estate Public is 1.8 times less risky than AP Public. The stock trades about -0.13 of its potential returns per unit of risk. The AP Public is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 780.00 in AP Public on November 28, 2024 and sell it today you would earn a total of 110.00 from holding AP Public or generate 14.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| 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. Land and Houses | Singha Estate vs. AP Public | Singha Estate vs. Lalin Property 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |