Correlation Between SC Asset and Phatra Leasing
Can any of the company-specific risk be diversified away by investing in both SC Asset and Phatra Leasing 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 Phatra Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SC Asset and Phatra Leasing Public, you can compare the effects of market volatilities on SC Asset and Phatra Leasing 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 Phatra Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of SC Asset and Phatra Leasing.
Diversification Opportunities for SC Asset and Phatra Leasing
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SC Asset and Phatra is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding SC Asset and Phatra Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phatra Leasing 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 Phatra Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phatra Leasing Public has no effect on the direction of SC Asset i.e., SC Asset and Phatra Leasing go up and down completely randomly.
Pair Corralation between SC Asset and Phatra Leasing
Assuming the 90 days horizon SC Asset is expected to generate 0.8 times more return on investment than Phatra Leasing. However, SC Asset is 1.24 times less risky than Phatra Leasing. It trades about -0.11 of its potential returns per unit of risk. Phatra Leasing Public is currently generating about -0.28 per unit of risk. If you would invest 292.00 in SC Asset on September 13, 2024 and sell it today you would lose (8.00) from holding SC Asset or give up 2.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SC Asset vs. Phatra Leasing Public
Performance |
| Timeline |
| SC Asset |
| Phatra Leasing Public |
SC Asset and Phatra Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SC Asset and Phatra Leasing
The main advantage of trading using opposite SC Asset and Phatra Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SC Asset position performs unexpectedly, Phatra Leasing 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 Phatra Leasing will offset losses from the drop in Phatra Leasing's long position.| SC Asset vs. Bangkok Sheet Metal | SC Asset vs. Lohakit Metal Public | SC Asset vs. Fine Metal Technologies | SC Asset vs. Dexon Technology PCL |
| Phatra Leasing vs. KGI Securities Public | Phatra Leasing vs. Pacific Pipe Public | Phatra Leasing vs. Peoples Garment Public | Phatra Leasing vs. Power Line Engineering |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |