Correlation Between Sappe Public and Lohakit Metal
Can any of the company-specific risk be diversified away by investing in both Sappe Public and Lohakit Metal 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 Lohakit Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sappe Public and Lohakit Metal Public, you can compare the effects of market volatilities on Sappe Public and Lohakit Metal 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 Lohakit Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sappe Public and Lohakit Metal.
Diversification Opportunities for Sappe Public and Lohakit Metal
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sappe and Lohakit is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Sappe Public and Lohakit Metal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lohakit Metal 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 Lohakit Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lohakit Metal Public has no effect on the direction of Sappe Public i.e., Sappe Public and Lohakit Metal go up and down completely randomly.
Pair Corralation between Sappe Public and Lohakit Metal
Assuming the 90 days trading horizon Sappe Public is expected to generate 2.55 times more return on investment than Lohakit Metal. However, Sappe Public is 2.55 times more volatile than Lohakit Metal Public. It trades about 0.0 of its potential returns per unit of risk. Lohakit Metal Public is currently generating about -0.05 per unit of risk. If you would invest 5,403 in Sappe Public on December 1, 2024 and sell it today you would lose (878.00) from holding Sappe Public or give up 16.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sappe Public vs. Lohakit Metal Public
Performance |
| Timeline |
| Sappe Public |
| Lohakit Metal Public |
Sappe Public and Lohakit Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sappe Public and Lohakit Metal
The main advantage of trading using opposite Sappe Public and Lohakit Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sappe Public position performs unexpectedly, Lohakit Metal 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 Lohakit Metal will offset losses from the drop in Lohakit Metal's long position.| Sappe Public vs. Ichitan Group Public | Sappe Public vs. Carabao Group Public | Sappe Public vs. MK Restaurant Group | Sappe Public vs. Srisawad Power 1979 |
| Lohakit Metal vs. MCS Steel Public | Lohakit Metal vs. Asia Plus Group | Lohakit Metal vs. Lalin Property Public | Lohakit Metal vs. Lam Soon 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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