Correlation Between Sabina Public and Sawang Export
Can any of the company-specific risk be diversified away by investing in both Sabina Public and Sawang Export 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 Sabina Public and Sawang Export into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabina Public and Sawang Export Public, you can compare the effects of market volatilities on Sabina Public and Sawang Export 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 Sabina Public with a short position of Sawang Export. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabina Public and Sawang Export.
Diversification Opportunities for Sabina Public and Sawang Export
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sabina and Sawang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sabina Public and Sawang Export Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sawang Export Public and Sabina 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 Sabina Public are associated (or correlated) with Sawang Export. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sawang Export Public has no effect on the direction of Sabina Public i.e., Sabina Public and Sawang Export go up and down completely randomly.
Pair Corralation between Sabina Public and Sawang Export
Assuming the 90 days trading horizon Sabina Public is expected to under-perform the Sawang Export. But the stock apears to be less risky and, when comparing its historical volatility, Sabina Public is 2.85 times less risky than Sawang Export. The stock trades about -0.17 of its potential returns per unit of risk. The Sawang Export Public is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,240 in Sawang Export Public on September 2, 2024 and sell it today you would lose (20.00) from holding Sawang Export Public or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabina Public vs. Sawang Export Public
Performance |
| Timeline |
| Sabina Public |
| Sawang Export Public |
Sabina Public and Sawang Export Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabina Public and Sawang Export
The main advantage of trading using opposite Sabina Public and Sawang Export positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabina Public position performs unexpectedly, Sawang Export 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 Sawang Export will offset losses from the drop in Sawang Export's long position.| Sabina Public vs. TRC Construction Public | Sabina Public vs. Bangkok Expressway and | Sabina Public vs. Lohakit Metal Public | Sabina Public vs. Gunkul Engineering Public |
| Sawang Export vs. Sabina Public | Sawang Export vs. Rockworth Public | Sawang Export vs. Thaitheparos Public | Sawang Export vs. Sappe 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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