Correlation Between SCB X and Origin Property
Can any of the company-specific risk be diversified away by investing in both SCB X and Origin Property 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 Origin Property 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 Origin Property PCL, you can compare the effects of market volatilities on SCB X and Origin Property 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 Origin Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCB X and Origin Property.
Diversification Opportunities for SCB X and Origin Property
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCB and Origin is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding SCB X Public and Origin Property PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Property PCL 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 Origin Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Property PCL has no effect on the direction of SCB X i.e., SCB X and Origin Property go up and down completely randomly.
Pair Corralation between SCB X and Origin Property
Assuming the 90 days trading horizon SCB X Public is expected to generate 0.54 times more return on investment than Origin Property. However, SCB X Public is 1.86 times less risky than Origin Property. It trades about 0.06 of its potential returns per unit of risk. Origin Property PCL is currently generating about -0.08 per unit of risk. If you would invest 8,859 in SCB X Public on September 13, 2024 and sell it today you would earn a total of 2,941 from holding SCB X Public or generate 33.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCB X Public vs. Origin Property PCL
Performance |
| Timeline |
| SCB X Public |
| Origin Property PCL |
SCB X and Origin Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCB X and Origin Property
The main advantage of trading using opposite SCB X and Origin Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCB X position performs unexpectedly, Origin Property 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 Origin Property will offset losses from the drop in Origin Property'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 |
| Origin Property vs. AP Public | Origin Property vs. Land and Houses | Origin Property vs. WHA Public | Origin Property 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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