Correlation Between Sappe Public and Akkhie Prakarn
Can any of the company-specific risk be diversified away by investing in both Sappe Public and Akkhie Prakarn 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 Sappe Public and Akkhie Prakarn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sappe Public and Akkhie Prakarn Public, you can compare the effects of market volatilities on Sappe Public and Akkhie Prakarn 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 Sappe Public with a short position of Akkhie Prakarn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sappe Public and Akkhie Prakarn.
Diversification Opportunities for Sappe Public and Akkhie Prakarn
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sappe and Akkhie is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Sappe Public and Akkhie Prakarn Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akkhie Prakarn Public and Sappe Public 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 Sappe Public are associated (or correlated) with Akkhie Prakarn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akkhie Prakarn Public has no effect on the direction of Sappe Public i.e., Sappe Public and Akkhie Prakarn go up and down completely randomly.
Pair Corralation between Sappe Public and Akkhie Prakarn
Assuming the 90 days trading horizon Sappe Public is expected to generate 0.95 times more return on investment than Akkhie Prakarn. However, Sappe Public is 1.06 times less risky than Akkhie Prakarn. It trades about 0.24 of its potential returns per unit of risk. Akkhie Prakarn Public is currently generating about -0.36 per unit of risk. If you would invest 6,775 in Sappe Public on September 1, 2024 and sell it today you would earn a total of 1,175 from holding Sappe Public or generate 17.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sappe Public vs. Akkhie Prakarn Public
Performance |
| Timeline |
| Sappe Public |
| Akkhie Prakarn Public |
Sappe Public and Akkhie Prakarn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sappe Public and Akkhie Prakarn
The main advantage of trading using opposite Sappe Public and Akkhie Prakarn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sappe Public position performs unexpectedly, Akkhie Prakarn 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 Akkhie Prakarn will offset losses from the drop in Akkhie Prakarn's long position.| Sappe Public vs. MK Restaurant Group | Sappe Public vs. TRC Construction Public | Sappe Public vs. Bangkok Expressway and | Sappe Public vs. Lohakit Metal Public |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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