Correlation Between SC Asset and Autocorp Holding
Can any of the company-specific risk be diversified away by investing in both SC Asset and Autocorp Holding 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 SC Asset and Autocorp Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SC Asset and Autocorp Holding Public, you can compare the effects of market volatilities on SC Asset and Autocorp Holding 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 SC Asset with a short position of Autocorp Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of SC Asset and Autocorp Holding.
Diversification Opportunities for SC Asset and Autocorp Holding
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SC Asset and Autocorp is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding SC Asset and Autocorp Holding Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autocorp Holding Public and SC Asset 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 SC Asset are associated (or correlated) with Autocorp Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autocorp Holding Public has no effect on the direction of SC Asset i.e., SC Asset and Autocorp Holding go up and down completely randomly.
Pair Corralation between SC Asset and Autocorp Holding
Assuming the 90 days horizon SC Asset is expected to generate 1.0 times more return on investment than Autocorp Holding. However, SC Asset is 1.0 times less risky than Autocorp Holding. It trades about 0.05 of its potential returns per unit of risk. Autocorp Holding Public is currently generating about 0.05 per unit of risk. If you would invest 418.00 in SC Asset on August 31, 2024 and sell it today you would lose (128.00) from holding SC Asset or give up 30.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
SC Asset vs. Autocorp Holding Public
Performance |
| Timeline |
| SC Asset |
| Autocorp Holding Public |
SC Asset and Autocorp Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SC Asset and Autocorp Holding
The main advantage of trading using opposite SC Asset and Autocorp Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SC Asset position performs unexpectedly, Autocorp Holding 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 Autocorp Holding will offset losses from the drop in Autocorp Holding's long position.| SC Asset vs. Siam Wellness Group | SC Asset vs. Lohakit Metal Public | SC Asset vs. 2S Metal Public | SC Asset vs. Digital Telecommunications Infrastructure |
| Autocorp Holding vs. Amanah Leasing Public | Autocorp Holding vs. Asia Fiber Public | Autocorp Holding vs. Ingress Industrial Public | Autocorp Holding vs. Ekarat Engineering 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |