Correlation Between Sabuy Technology and Master Style
Can any of the company-specific risk be diversified away by investing in both Sabuy Technology and Master Style 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 Master Style 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 Master Style PCL, you can compare the effects of market volatilities on Sabuy Technology and Master Style 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 Master Style. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabuy Technology and Master Style.
Diversification Opportunities for Sabuy Technology and Master Style
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sabuy and Master is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Sabuy Technology Public and Master Style PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Master Style 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 Master Style. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Master Style PCL has no effect on the direction of Sabuy Technology i.e., Sabuy Technology and Master Style go up and down completely randomly.
Pair Corralation between Sabuy Technology and Master Style
Assuming the 90 days trading horizon Sabuy Technology Public is expected to under-perform the Master Style. In addition to that, Sabuy Technology is 2.2 times more volatile than Master Style PCL. It trades about -0.25 of its total potential returns per unit of risk. Master Style PCL is currently generating about -0.16 per unit of volatility. If you would invest 4,750 in Master Style PCL on September 2, 2024 and sell it today you would lose (425.00) from holding Master Style PCL or give up 8.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sabuy Technology Public vs. Master Style PCL
Performance |
| Timeline |
| Sabuy Technology Public |
| Master Style PCL |
Sabuy Technology and Master Style Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabuy Technology and Master Style
The main advantage of trading using opposite Sabuy Technology and Master Style positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabuy Technology position performs unexpectedly, Master Style 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 Master Style will offset losses from the drop in Master Style'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 |
| Master Style vs. Sabuy Technology Public | Master Style vs. Com7 PCL | Master Style vs. Muangthai Capital Public | Master Style vs. Make To Win |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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