Correlation Between SCB X and Sakol Energy
Can any of the company-specific risk be diversified away by investing in both SCB X and Sakol Energy 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 Sakol Energy 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 Sakol Energy Public, you can compare the effects of market volatilities on SCB X and Sakol Energy 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 Sakol Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCB X and Sakol Energy.
Diversification Opportunities for SCB X and Sakol Energy
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SCB and Sakol is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding SCB X Public and Sakol Energy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sakol Energy 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 Sakol Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sakol Energy Public has no effect on the direction of SCB X i.e., SCB X and Sakol Energy go up and down completely randomly.
Pair Corralation between SCB X and Sakol Energy
Assuming the 90 days trading horizon SCB X Public is expected to generate 0.22 times more return on investment than Sakol Energy. However, SCB X Public is 4.52 times less risky than Sakol Energy. It trades about 0.07 of its potential returns per unit of risk. Sakol Energy Public is currently generating about -0.21 per unit of risk. If you would invest 11,900 in SCB X Public on December 11, 2024 and sell it today you would earn a total of 350.00 from holding SCB X Public or generate 2.94% 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. Sakol Energy Public
Performance |
| Timeline |
| SCB X Public |
| Sakol Energy Public |
SCB X and Sakol Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCB X and Sakol Energy
The main advantage of trading using opposite SCB X and Sakol Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCB X position performs unexpectedly, Sakol Energy 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 Sakol Energy will offset losses from the drop in Sakol Energy's long position.| SCB X vs. Global Green Chemicals | SCB X vs. TRC Construction Public | SCB X vs. Rich Sport Public | SCB X vs. Lohakit Metal Public |
| Sakol Energy vs. Siamgas and Petrochemicals | Sakol Energy vs. Star Petroleum Refining | Sakol Energy vs. PTG Energy PCL | Sakol Energy vs. IRPC 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.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |