Correlation Between Sawang Export and Sabina Public
Can any of the company-specific risk be diversified away by investing in both Sawang Export and Sabina Public 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 Sawang Export and Sabina Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sawang Export Public and Sabina Public, you can compare the effects of market volatilities on Sawang Export and Sabina Public 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 Sawang Export with a short position of Sabina Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sawang Export and Sabina Public.
Diversification Opportunities for Sawang Export and Sabina Public
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sawang and Sabina is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Sawang Export Public and Sabina Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabina Public and Sawang Export 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 Sawang Export Public are associated (or correlated) with Sabina Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabina Public has no effect on the direction of Sawang Export i.e., Sawang Export and Sabina Public go up and down completely randomly.
Pair Corralation between Sawang Export and Sabina Public
Assuming the 90 days trading horizon Sawang Export Public is expected to generate 2.97 times more return on investment than Sabina Public. However, Sawang Export is 2.97 times more volatile than Sabina Public. It trades about -0.02 of its potential returns per unit of risk. Sabina Public is currently generating about -0.23 per unit of risk. If you would invest 1,240 in Sawang Export Public on September 3, 2024 and sell it today you would lose (20.00) from holding Sawang Export Public or give up 1.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sawang Export Public vs. Sabina Public
Performance |
| Timeline |
| Sawang Export Public |
| Sabina Public |
Sawang Export and Sabina Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sawang Export and Sabina Public
The main advantage of trading using opposite Sawang Export and Sabina Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sawang Export position performs unexpectedly, Sabina Public 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 Sabina Public will offset losses from the drop in Sabina Public's long position.| Sawang Export vs. Sabina Public | Sawang Export vs. Rockworth Public | Sawang Export vs. Thaitheparos Public | Sawang Export vs. Sappe Public |
| Sabina Public vs. Central Pattana Public | Sabina Public vs. CP ALL Public | Sabina Public vs. Bangkok Dusit Medical | Sabina Public vs. Airports of Thailand |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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