Correlation Between Sabuy Technology and Aurora Design
Can any of the company-specific risk be diversified away by investing in both Sabuy Technology and Aurora Design 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 Sabuy Technology and Aurora Design into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabuy Technology Public and Aurora Design PCL, you can compare the effects of market volatilities on Sabuy Technology and Aurora Design 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 Sabuy Technology with a short position of Aurora Design. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabuy Technology and Aurora Design.
Diversification Opportunities for Sabuy Technology and Aurora Design
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sabuy and Aurora is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sabuy Technology Public and Aurora Design PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurora Design PCL and Sabuy Technology 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 Sabuy Technology Public are associated (or correlated) with Aurora Design. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurora Design PCL has no effect on the direction of Sabuy Technology i.e., Sabuy Technology and Aurora Design go up and down completely randomly.
Pair Corralation between Sabuy Technology and Aurora Design
Assuming the 90 days trading horizon Sabuy Technology is expected to generate 1.31 times less return on investment than Aurora Design. In addition to that, Sabuy Technology is 1.01 times more volatile than Aurora Design PCL. It trades about 0.03 of its total potential returns per unit of risk. Aurora Design PCL is currently generating about 0.04 per unit of volatility. If you would invest 1,545 in Aurora Design PCL on September 3, 2024 and sell it today you would lose (85.00) from holding Aurora Design PCL or give up 5.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabuy Technology Public vs. Aurora Design PCL
Performance |
| Timeline |
| Sabuy Technology Public |
| Aurora Design PCL |
Sabuy Technology and Aurora Design Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabuy Technology and Aurora Design
The main advantage of trading using opposite Sabuy Technology and Aurora Design positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabuy Technology position performs unexpectedly, Aurora Design 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 Aurora Design will offset losses from the drop in Aurora Design's long position.| Sabuy Technology vs. Jay Mart Public | Sabuy Technology vs. Forth Public | Sabuy Technology vs. Singer Thailand Public | Sabuy Technology vs. PTT Oil and |
| Aurora Design vs. Srinanaporn Marketing Public | Aurora Design vs. AP Public | Aurora Design vs. Mega Lifesciences Public | Aurora Design vs. Siam Global House |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |