Correlation Between Saksiam Leasing and SCB X
Can any of the company-specific risk be diversified away by investing in both Saksiam Leasing and SCB X 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 SCB X 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 SCB X Public, you can compare the effects of market volatilities on Saksiam Leasing and SCB X 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 SCB X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Saksiam Leasing and SCB X.
Diversification Opportunities for Saksiam Leasing and SCB X
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Saksiam and SCB is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Saksiam Leasing Public and SCB X Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCB X Public 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 SCB X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCB X Public has no effect on the direction of Saksiam Leasing i.e., Saksiam Leasing and SCB X go up and down completely randomly.
Pair Corralation between Saksiam Leasing and SCB X
Assuming the 90 days trading horizon Saksiam Leasing is expected to generate 5.9 times less return on investment than SCB X. In addition to that, Saksiam Leasing is 2.37 times more volatile than SCB X Public. It trades about 0.0 of its total potential returns per unit of risk. SCB X Public is currently generating about 0.06 per unit of volatility. If you would invest 8,690 in SCB X Public on September 3, 2024 and sell it today you would earn a total of 2,760 from holding SCB X Public or generate 31.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Saksiam Leasing Public vs. SCB X Public
Performance |
| Timeline |
| Saksiam Leasing Public |
| SCB X Public |
Saksiam Leasing and SCB X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Saksiam Leasing and SCB X
The main advantage of trading using opposite Saksiam Leasing and SCB X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Saksiam Leasing position performs unexpectedly, SCB X 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 SCB X will offset losses from the drop in SCB X'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 |
| SCB X vs. WHA Industrial Leasehold | SCB X vs. Charoen Pokphand Foods | SCB X vs. CENTRAL RETAIL P | SCB X vs. Lohakit Metal Public |
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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