Correlation Between SCB X and Nusasiri Public
Can any of the company-specific risk be diversified away by investing in both SCB X and Nusasiri 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 Nusasiri 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 Nusasiri Public, you can compare the effects of market volatilities on SCB X and Nusasiri 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 Nusasiri Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCB X and Nusasiri Public.
Diversification Opportunities for SCB X and Nusasiri Public
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCB and Nusasiri is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding SCB X Public and Nusasiri Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nusasiri 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 Nusasiri Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nusasiri Public has no effect on the direction of SCB X i.e., SCB X and Nusasiri Public go up and down completely randomly.
Pair Corralation between SCB X and Nusasiri Public
Assuming the 90 days trading horizon SCB X is expected to generate 24.35 times less return on investment than Nusasiri Public. But when comparing it to its historical volatility, SCB X Public is 41.36 times less risky than Nusasiri Public. It trades about 0.06 of its potential returns per unit of risk. Nusasiri Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 120.00 in Nusasiri Public on September 14, 2024 and sell it today you would lose (99.00) from holding Nusasiri Public or give up 82.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCB X Public vs. Nusasiri Public
Performance |
| Timeline |
| SCB X Public |
| Nusasiri Public |
SCB X and Nusasiri Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCB X and Nusasiri Public
The main advantage of trading using opposite SCB X and Nusasiri Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCB X position performs unexpectedly, Nusasiri 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 Nusasiri Public will offset losses from the drop in Nusasiri Public's long position.| SCB X vs. KGI Securities Public | SCB X vs. Lalin Property Public | SCB X vs. Hwa Fong Rubber | SCB X vs. MCS Steel 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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