Correlation Between SCB X and RS Public
Can any of the company-specific risk be diversified away by investing in both SCB X and RS 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 RS 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 RS Public, you can compare the effects of market volatilities on SCB X and RS 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 RS Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCB X and RS Public.
Diversification Opportunities for SCB X and RS Public
Pay attention - limited upside
The 3 months correlation between SCB and RS Public is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding SCB X Public and RS Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RS 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 RS Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RS Public has no effect on the direction of SCB X i.e., SCB X and RS Public go up and down completely randomly.
Pair Corralation between SCB X and RS Public
Assuming the 90 days trading horizon SCB X is expected to generate 18.12 times less return on investment than RS Public. But when comparing it to its historical volatility, SCB X Public is 42.24 times less risky than RS Public. It trades about 0.07 of its potential returns per unit of risk. RS Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 670.00 in RS Public on December 4, 2024 and sell it today you would lose (606.00) from holding RS Public or give up 90.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
SCB X Public vs. RS Public
Performance |
| Timeline |
| SCB X Public |
| RS Public |
SCB X and RS Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCB X and RS Public
The main advantage of trading using opposite SCB X and RS Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCB X position performs unexpectedly, RS 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 RS Public will offset losses from the drop in RS Public's long position.| SCB X vs. Bioscience Animal Health | SCB X vs. Premier Technology Public | SCB X vs. THONBURI HEALTHCARE GRO NVDR | SCB X vs. Siamgas and Petrochemicals |
| RS Public vs. TMBThanachart Bank Public | RS Public vs. Information and Communication | RS Public vs. Tanachira Retail | RS Public vs. Charan Insurance 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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