Correlation Between Saksiam Leasing and SC Asset
Can any of the company-specific risk be diversified away by investing in both Saksiam Leasing and SC Asset 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 SC Asset 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 SC Asset, you can compare the effects of market volatilities on Saksiam Leasing and SC Asset 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 SC Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saksiam Leasing and SC Asset.
Diversification Opportunities for Saksiam Leasing and SC Asset
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Saksiam and SC Asset is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Saksiam Leasing Public and SC Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SC Asset 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 SC Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SC Asset has no effect on the direction of Saksiam Leasing i.e., Saksiam Leasing and SC Asset go up and down completely randomly.
Pair Corralation between Saksiam Leasing and SC Asset
Assuming the 90 days trading horizon Saksiam Leasing Public is expected to generate 3.02 times more return on investment than SC Asset. However, Saksiam Leasing is 3.02 times more volatile than SC Asset. It trades about 0.03 of its potential returns per unit of risk. SC Asset is currently generating about -0.17 per unit of risk. If you would invest 515.00 in Saksiam Leasing Public on September 4, 2024 and sell it today you would earn a total of 5.00 from holding Saksiam Leasing Public or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Saksiam Leasing Public vs. SC Asset
Performance |
| Timeline |
| Saksiam Leasing Public |
| SC Asset |
Saksiam Leasing and SC Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saksiam Leasing and SC Asset
The main advantage of trading using opposite Saksiam Leasing and SC Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saksiam Leasing position performs unexpectedly, SC Asset 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 SC Asset will offset losses from the drop in SC Asset's long position.| Saksiam Leasing vs. Multibax Public | Saksiam Leasing vs. Forth Smart Service | Saksiam Leasing vs. LPN Development Public | Saksiam Leasing vs. Jasmine International Public |
| SC Asset vs. Peerapat Technology Public | SC Asset vs. Silicon Craft Technology | SC Asset vs. Turnkey Communication Services | SC Asset vs. Advanced Information Technology |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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