Correlation Between SCB X and Country Group
Can any of the company-specific risk be diversified away by investing in both SCB X and Country Group 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 SCB X and Country Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCB X Public and Country Group Development, you can compare the effects of market volatilities on SCB X and Country Group 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 SCB X with a short position of Country Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCB X and Country Group.
Diversification Opportunities for SCB X and Country Group
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SCB and Country is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding SCB X Public and Country Group Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Country Group Development and SCB X 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 SCB X Public are associated (or correlated) with Country Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Country Group Development has no effect on the direction of SCB X i.e., SCB X and Country Group go up and down completely randomly.
Pair Corralation between SCB X and Country Group
Assuming the 90 days trading horizon SCB X Public is expected to generate 0.29 times more return on investment than Country Group. However, SCB X Public is 3.46 times less risky than Country Group. It trades about 0.32 of its potential returns per unit of risk. Country Group Development is currently generating about -0.16 per unit of risk. If you would invest 11,700 in SCB X Public on November 3, 2024 and sell it today you would earn a total of 800.00 from holding SCB X Public or generate 6.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCB X Public vs. Country Group Development
Performance |
| Timeline |
| SCB X Public |
| Country Group Development |
SCB X and Country Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCB X and Country Group
The main advantage of trading using opposite SCB X and Country Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCB X position performs unexpectedly, Country Group 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 Country Group will offset losses from the drop in Country Group's long position.| SCB X vs. Thaifoods Group Public | SCB X vs. Copperwired Public | SCB X vs. Mena Transport Public | SCB X vs. Digital Telecommunications Infrastructure |
| Country Group vs. Eastern Star Real | Country Group vs. Bangkok Land Public | Country Group vs. Ananda Development Public | Country Group vs. Better World Green |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |