Correlation Between Somboon Advance and Srinanaporn Marketing
Can any of the company-specific risk be diversified away by investing in both Somboon Advance and Srinanaporn Marketing 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 Srinanaporn Marketing 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 Srinanaporn Marketing Public, you can compare the effects of market volatilities on Somboon Advance and Srinanaporn Marketing 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 Srinanaporn Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Somboon Advance and Srinanaporn Marketing.
Diversification Opportunities for Somboon Advance and Srinanaporn Marketing
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Somboon and Srinanaporn is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Somboon Advance Technology and Srinanaporn Marketing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srinanaporn Marketing 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 Srinanaporn Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srinanaporn Marketing has no effect on the direction of Somboon Advance i.e., Somboon Advance and Srinanaporn Marketing go up and down completely randomly.
Pair Corralation between Somboon Advance and Srinanaporn Marketing
Assuming the 90 days trading horizon Somboon Advance Technology is expected to generate 0.52 times more return on investment than Srinanaporn Marketing. However, Somboon Advance Technology is 1.93 times less risky than Srinanaporn Marketing. It trades about -0.34 of its potential returns per unit of risk. Srinanaporn Marketing Public is currently generating about -0.2 per unit of risk. If you would invest 1,200 in Somboon Advance Technology on August 28, 2024 and sell it today you would lose (90.00) from holding Somboon Advance Technology or give up 7.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Somboon Advance Technology vs. Srinanaporn Marketing Public
Performance |
| Timeline |
| Somboon Advance Tech |
| Srinanaporn Marketing |
Somboon Advance and Srinanaporn Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Somboon Advance and Srinanaporn Marketing
The main advantage of trading using opposite Somboon Advance and Srinanaporn Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Somboon Advance position performs unexpectedly, Srinanaporn Marketing 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 Srinanaporn Marketing will offset losses from the drop in Srinanaporn Marketing's long position.| Somboon Advance vs. AAPICO Hitech Public | Somboon Advance vs. Thai Stanley Electric | Somboon Advance vs. Hana Microelectronics Public | Somboon Advance vs. TISCO Financial Group |
| Srinanaporn Marketing vs. Chamni Eye PCL | Srinanaporn Marketing vs. Siam Global House | Srinanaporn Marketing vs. The Erawan Group | Srinanaporn Marketing vs. Ditto 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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