Correlation Between Saksiam Leasing and Somboon Advance
Can any of the company-specific risk be diversified away by investing in both Saksiam Leasing and Somboon Advance 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 Saksiam Leasing and Somboon Advance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Saksiam Leasing Public and Somboon Advance Technology, you can compare the effects of market volatilities on Saksiam Leasing and Somboon Advance 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 Saksiam Leasing with a short position of Somboon Advance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saksiam Leasing and Somboon Advance.
Diversification Opportunities for Saksiam Leasing and Somboon Advance
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Saksiam and Somboon is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Saksiam Leasing Public and Somboon Advance Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Somboon Advance Tech and Saksiam Leasing 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 Saksiam Leasing Public are associated (or correlated) with Somboon Advance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Somboon Advance Tech has no effect on the direction of Saksiam Leasing i.e., Saksiam Leasing and Somboon Advance go up and down completely randomly.
Pair Corralation between Saksiam Leasing and Somboon Advance
Assuming the 90 days trading horizon Saksiam Leasing Public is expected to generate 2.89 times more return on investment than Somboon Advance. However, Saksiam Leasing is 2.89 times more volatile than Somboon Advance Technology. It trades about -0.06 of its potential returns per unit of risk. Somboon Advance Technology is currently generating about -0.41 per unit of risk. If you would invest 540.00 in Saksiam Leasing Public on August 30, 2024 and sell it today you would lose (25.00) from holding Saksiam Leasing Public or give up 4.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Saksiam Leasing Public vs. Somboon Advance Technology
Performance |
| Timeline |
| Saksiam Leasing Public |
| Somboon Advance Tech |
Saksiam Leasing and Somboon Advance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saksiam Leasing and Somboon Advance
The main advantage of trading using opposite Saksiam Leasing and Somboon Advance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saksiam Leasing position performs unexpectedly, Somboon Advance 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 Somboon Advance will offset losses from the drop in Somboon Advance's long position.| Saksiam Leasing vs. Srisawad Power 1979 | Saksiam Leasing vs. Muangthai Capital Public | Saksiam Leasing vs. Micro Leasing Public | Saksiam Leasing vs. Krungthai Card PCL |
| Somboon Advance vs. AAPICO Hitech Public | Somboon Advance vs. Thai Stanley Electric | Somboon Advance vs. Hana Microelectronics Public | Somboon Advance vs. TISCO Financial Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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