Correlation Between Sabuy Technology and Srinanaporn Marketing
Can any of the company-specific risk be diversified away by investing in both Sabuy Technology and Srinanaporn Marketing 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 Srinanaporn Marketing 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 Srinanaporn Marketing Public, you can compare the effects of market volatilities on Sabuy Technology and Srinanaporn Marketing 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 Srinanaporn Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabuy Technology and Srinanaporn Marketing.
Diversification Opportunities for Sabuy Technology and Srinanaporn Marketing
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sabuy and Srinanaporn is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Sabuy Technology Public and Srinanaporn Marketing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srinanaporn Marketing 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 Srinanaporn Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srinanaporn Marketing has no effect on the direction of Sabuy Technology i.e., Sabuy Technology and Srinanaporn Marketing go up and down completely randomly.
Pair Corralation between Sabuy Technology and Srinanaporn Marketing
Assuming the 90 days trading horizon Sabuy Technology Public is expected to under-perform the Srinanaporn Marketing. In addition to that, Sabuy Technology is 2.39 times more volatile than Srinanaporn Marketing Public. It trades about -0.48 of its total potential returns per unit of risk. Srinanaporn Marketing Public is currently generating about -0.17 per unit of volatility. If you would invest 1,290 in Srinanaporn Marketing Public on August 29, 2024 and sell it today you would lose (100.00) from holding Srinanaporn Marketing Public or give up 7.75% 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. Srinanaporn Marketing Public
Performance |
| Timeline |
| Sabuy Technology Public |
| Srinanaporn Marketing |
Sabuy Technology and Srinanaporn Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabuy Technology and Srinanaporn Marketing
The main advantage of trading using opposite Sabuy Technology and Srinanaporn Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabuy Technology position performs unexpectedly, Srinanaporn Marketing 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 Srinanaporn Marketing will offset losses from the drop in Srinanaporn Marketing'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 |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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