Correlation Between Sabuy Technology and Getabec Public
Can any of the company-specific risk be diversified away by investing in both Sabuy Technology and Getabec 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 Sabuy Technology and Getabec Public 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 Getabec Public, you can compare the effects of market volatilities on Sabuy Technology and Getabec 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 Sabuy Technology with a short position of Getabec Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabuy Technology and Getabec Public.
Diversification Opportunities for Sabuy Technology and Getabec Public
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sabuy and Getabec is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Sabuy Technology Public and Getabec Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getabec Public 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 Getabec Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getabec Public has no effect on the direction of Sabuy Technology i.e., Sabuy Technology and Getabec Public go up and down completely randomly.
Pair Corralation between Sabuy Technology and Getabec Public
Assuming the 90 days trading horizon Sabuy Technology Public is expected to under-perform the Getabec Public. In addition to that, Sabuy Technology is 2.35 times more volatile than Getabec Public. It trades about -0.48 of its total potential returns per unit of risk. Getabec Public is currently generating about 0.01 per unit of volatility. If you would invest 71.00 in Getabec Public on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Getabec Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sabuy Technology Public vs. Getabec Public
Performance |
| Timeline |
| Sabuy Technology Public |
| Getabec Public |
Sabuy Technology and Getabec Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabuy Technology and Getabec Public
The main advantage of trading using opposite Sabuy Technology and Getabec Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabuy Technology position performs unexpectedly, Getabec 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 Getabec Public will offset losses from the drop in Getabec Public's long position.| Sabuy Technology vs. Kulthorn Kirby Public | Sabuy Technology vs. The Erawan Group | Sabuy Technology vs. Airports of Thailand | Sabuy Technology vs. Eastern Technical Engineering |
| Getabec Public vs. Kulthorn Kirby Public | Getabec Public vs. The Erawan Group | Getabec Public vs. Airports of Thailand | Getabec Public vs. Eastern Technical Engineering |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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