Correlation Between Sappe Public and Masterkool International
Can any of the company-specific risk be diversified away by investing in both Sappe Public and Masterkool International 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 Masterkool International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sappe Public and Masterkool International Public, you can compare the effects of market volatilities on Sappe Public and Masterkool International 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 Masterkool International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sappe Public and Masterkool International.
Diversification Opportunities for Sappe Public and Masterkool International
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sappe and Masterkool is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Sappe Public and Masterkool International Publi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masterkool International 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 Masterkool International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masterkool International has no effect on the direction of Sappe Public i.e., Sappe Public and Masterkool International go up and down completely randomly.
Pair Corralation between Sappe Public and Masterkool International
Assuming the 90 days trading horizon Sappe Public is expected to generate 0.78 times more return on investment than Masterkool International. However, Sappe Public is 1.28 times less risky than Masterkool International. It trades about 0.29 of its potential returns per unit of risk. Masterkool International Public is currently generating about -0.13 per unit of risk. If you would invest 6,525 in Sappe Public on August 31, 2024 and sell it today you would earn a total of 1,425 from holding Sappe Public or generate 21.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sappe Public vs. Masterkool International Publi
Performance |
| Timeline |
| Sappe Public |
| Masterkool International |
Sappe Public and Masterkool International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sappe Public and Masterkool International
The main advantage of trading using opposite Sappe Public and Masterkool International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sappe Public position performs unexpectedly, Masterkool International 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 Masterkool International will offset losses from the drop in Masterkool International'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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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