Correlation Between SC Asset and Eastern Star
Can any of the company-specific risk be diversified away by investing in both SC Asset and Eastern Star 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 Eastern Star into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SC Asset and Eastern Star Real, you can compare the effects of market volatilities on SC Asset and Eastern Star 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 Eastern Star. Check out your portfolio center. Please also check ongoing floating volatility patterns of SC Asset and Eastern Star.
Diversification Opportunities for SC Asset and Eastern Star
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SC Asset and Eastern is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding SC Asset and Eastern Star Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Star Real 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 Eastern Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Star Real has no effect on the direction of SC Asset i.e., SC Asset and Eastern Star go up and down completely randomly.
Pair Corralation between SC Asset and Eastern Star
Assuming the 90 days horizon SC Asset is expected to generate 1.0 times more return on investment than Eastern Star. However, SC Asset is 1.0 times less risky than Eastern Star. It trades about 0.04 of its potential returns per unit of risk. Eastern Star Real is currently generating about 0.04 per unit of risk. If you would invest 408.00 in SC Asset on November 27, 2024 and sell it today you would lose (146.00) from holding SC Asset or give up 35.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SC Asset vs. Eastern Star Real
Performance |
| Timeline |
| SC Asset |
| Eastern Star Real |
SC Asset and Eastern Star Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SC Asset and Eastern Star
The main advantage of trading using opposite SC Asset and Eastern Star positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SC Asset position performs unexpectedly, Eastern Star 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 Eastern Star will offset losses from the drop in Eastern Star's long position.| SC Asset vs. Internet Thailand Public | SC Asset vs. Symphony Communication Public | SC Asset vs. 3BB INTERNET INFRASTRUCTURE | SC Asset vs. Information and Communication |
| Eastern Star vs. Land and Houses | Eastern Star vs. AP Public | Eastern Star vs. Lalin Property Public | Eastern Star vs. Quality Houses 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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