Correlation Between SCB X and Chememan Public
Can any of the company-specific risk be diversified away by investing in both SCB X and Chememan 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 SCB X and Chememan Public 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 Chememan Public, you can compare the effects of market volatilities on SCB X and Chememan 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 SCB X with a short position of Chememan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCB X and Chememan Public.
Diversification Opportunities for SCB X and Chememan Public
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCB and Chememan is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SCB X Public and Chememan Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chememan Public 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 Chememan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chememan Public has no effect on the direction of SCB X i.e., SCB X and Chememan Public go up and down completely randomly.
Pair Corralation between SCB X and Chememan Public
Assuming the 90 days trading horizon SCB X is expected to generate 17.76 times less return on investment than Chememan Public. But when comparing it to its historical volatility, SCB X Public is 1.74 times less risky than Chememan Public. It trades about 0.0 of its potential returns per unit of risk. Chememan Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 212.00 in Chememan Public on August 28, 2024 and sell it today you would earn a total of 2.00 from holding Chememan Public or generate 0.94% 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. Chememan Public
Performance |
| Timeline |
| SCB X Public |
| Chememan Public |
SCB X and Chememan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCB X and Chememan Public
The main advantage of trading using opposite SCB X and Chememan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCB X position performs unexpectedly, Chememan 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 Chememan Public will offset losses from the drop in Chememan Public's long position.| SCB X vs. Thai Energy Storage | SCB X vs. Royal Orchid Hotel | SCB X vs. Grand Canal Land | SCB X vs. PRG Public |
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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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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