Correlation Between Srisawad Power and AIRA Factoring
Can any of the company-specific risk be diversified away by investing in both Srisawad Power and AIRA Factoring 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 Srisawad Power and AIRA Factoring into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Srisawad Power 1979 and AIRA Factoring Public, you can compare the effects of market volatilities on Srisawad Power and AIRA Factoring 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 Srisawad Power with a short position of AIRA Factoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srisawad Power and AIRA Factoring.
Diversification Opportunities for Srisawad Power and AIRA Factoring
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Srisawad and AIRA is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Srisawad Power 1979 and AIRA Factoring Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AIRA Factoring Public and Srisawad Power 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 Srisawad Power 1979 are associated (or correlated) with AIRA Factoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AIRA Factoring Public has no effect on the direction of Srisawad Power i.e., Srisawad Power and AIRA Factoring go up and down completely randomly.
Pair Corralation between Srisawad Power and AIRA Factoring
Assuming the 90 days trading horizon Srisawad Power 1979 is expected to generate 13.11 times more return on investment than AIRA Factoring. However, Srisawad Power is 13.11 times more volatile than AIRA Factoring Public. It trades about 0.05 of its potential returns per unit of risk. AIRA Factoring Public is currently generating about -0.02 per unit of risk. If you would invest 4,271 in Srisawad Power 1979 on September 12, 2024 and sell it today you would lose (296.00) from holding Srisawad Power 1979 or give up 6.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Srisawad Power 1979 vs. AIRA Factoring Public
Performance |
| Timeline |
| Srisawad Power 1979 |
| AIRA Factoring Public |
Srisawad Power and AIRA Factoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srisawad Power and AIRA Factoring
The main advantage of trading using opposite Srisawad Power and AIRA Factoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srisawad Power position performs unexpectedly, AIRA Factoring 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 AIRA Factoring will offset losses from the drop in AIRA Factoring's long position.| Srisawad Power vs. KGI Securities Public | Srisawad Power vs. Lalin Property Public | Srisawad Power vs. Hwa Fong Rubber | Srisawad Power vs. MCS Steel Public |
| AIRA Factoring vs. Srisawad Power 1979 | AIRA Factoring vs. Muangthai Capital Public | AIRA Factoring vs. Micro Leasing Public | AIRA Factoring vs. Krungthai Card PCL |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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