Correlation Between SCB X and Singha Estate
Can any of the company-specific risk be diversified away by investing in both SCB X and Singha Estate 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 Singha Estate 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 Singha Estate Public, you can compare the effects of market volatilities on SCB X and Singha Estate 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 Singha Estate. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCB X and Singha Estate.
Diversification Opportunities for SCB X and Singha Estate
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCB and Singha is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding SCB X Public and Singha Estate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singha Estate 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 Singha Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singha Estate Public has no effect on the direction of SCB X i.e., SCB X and Singha Estate go up and down completely randomly.
Pair Corralation between SCB X and Singha Estate
Assuming the 90 days trading horizon SCB X Public is expected to generate 0.31 times more return on investment than Singha Estate. However, SCB X Public is 3.21 times less risky than Singha Estate. It trades about 0.32 of its potential returns per unit of risk. Singha Estate Public is currently generating about -0.32 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCB X Public vs. Singha Estate Public
Performance |
| Timeline |
| SCB X Public |
| Singha Estate Public |
SCB X and Singha Estate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCB X and Singha Estate
The main advantage of trading using opposite SCB X and Singha Estate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCB X position performs unexpectedly, Singha Estate 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 Singha Estate will offset losses from the drop in Singha Estate'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 |
| Singha Estate vs. Siri Prime Office | Singha Estate vs. WHA Public | Singha Estate vs. Supalai Public | Singha Estate 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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