Correlation Between Somboon Advance and Silicon Craft
Can any of the company-specific risk be diversified away by investing in both Somboon Advance and Silicon Craft 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 Somboon Advance and Silicon Craft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Somboon Advance Technology and Silicon Craft Technology, you can compare the effects of market volatilities on Somboon Advance and Silicon Craft 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 Somboon Advance with a short position of Silicon Craft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Somboon Advance and Silicon Craft.
Diversification Opportunities for Somboon Advance and Silicon Craft
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Somboon and Silicon is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Somboon Advance Technology and Silicon Craft Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Craft Technology and Somboon Advance 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 Somboon Advance Technology are associated (or correlated) with Silicon Craft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Craft Technology has no effect on the direction of Somboon Advance i.e., Somboon Advance and Silicon Craft go up and down completely randomly.
Pair Corralation between Somboon Advance and Silicon Craft
Assuming the 90 days trading horizon Somboon Advance Technology is expected to generate 0.54 times more return on investment than Silicon Craft. However, Somboon Advance Technology is 1.84 times less risky than Silicon Craft. It trades about -0.1 of its potential returns per unit of risk. Silicon Craft Technology is currently generating about -0.07 per unit of risk. If you would invest 1,790 in Somboon Advance Technology on August 31, 2024 and sell it today you would lose (700.00) from holding Somboon Advance Technology or give up 39.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Somboon Advance Technology vs. Silicon Craft Technology
Performance |
| Timeline |
| Somboon Advance Tech |
| Silicon Craft Technology |
Somboon Advance and Silicon Craft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Somboon Advance and Silicon Craft
The main advantage of trading using opposite Somboon Advance and Silicon Craft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Somboon Advance position performs unexpectedly, Silicon Craft 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 Silicon Craft will offset losses from the drop in Silicon Craft's long position.| Somboon Advance vs. TRC Construction Public | Somboon Advance vs. Bangkok Expressway and | Somboon Advance vs. Lohakit Metal Public | Somboon Advance vs. Gunkul Engineering Public |
| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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