Correlation Between Srisawad Power and Ngern Tid
Can any of the company-specific risk be diversified away by investing in both Srisawad Power and Ngern Tid 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 Ngern Tid 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 Ngern Tid Lor, you can compare the effects of market volatilities on Srisawad Power and Ngern Tid 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 Ngern Tid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Srisawad Power and Ngern Tid.
Diversification Opportunities for Srisawad Power and Ngern Tid
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Srisawad and Ngern is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Srisawad Power 1979 and Ngern Tid Lor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ngern Tid Lor 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 Ngern Tid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ngern Tid Lor has no effect on the direction of Srisawad Power i.e., Srisawad Power and Ngern Tid go up and down completely randomly.
Pair Corralation between Srisawad Power and Ngern Tid
Assuming the 90 days trading horizon Srisawad Power 1979 is expected to under-perform the Ngern Tid. But the stock apears to be less risky and, when comparing its historical volatility, Srisawad Power 1979 is 1.32 times less risky than Ngern Tid. The stock trades about -0.09 of its potential returns per unit of risk. The Ngern Tid Lor is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,730 in Ngern Tid Lor on August 31, 2024 and sell it today you would earn a total of 30.00 from holding Ngern Tid Lor or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Srisawad Power 1979 vs. Ngern Tid Lor
Performance |
| Timeline |
| Srisawad Power 1979 |
| Ngern Tid Lor |
Srisawad Power and Ngern Tid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Srisawad Power and Ngern Tid
The main advantage of trading using opposite Srisawad Power and Ngern Tid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Srisawad Power position performs unexpectedly, Ngern Tid 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 Ngern Tid will offset losses from the drop in Ngern Tid's long position.| Srisawad Power vs. TISCO Financial Group | Srisawad Power vs. SCB X Public | Srisawad Power vs. Bangkok Bank 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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