Correlation Between SCB X and Supalai Public
Can any of the company-specific risk be diversified away by investing in both SCB X and Supalai 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 Supalai 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 Supalai Public, you can compare the effects of market volatilities on SCB X and Supalai 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 Supalai Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCB X and Supalai Public.
Diversification Opportunities for SCB X and Supalai Public
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCB and Supalai is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding SCB X Public and Supalai Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Supalai 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 Supalai Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Supalai Public has no effect on the direction of SCB X i.e., SCB X and Supalai Public go up and down completely randomly.
Pair Corralation between SCB X and Supalai Public
Assuming the 90 days trading horizon SCB X Public is expected to generate 0.65 times more return on investment than Supalai Public. However, SCB X Public is 1.54 times less risky than Supalai Public. It trades about 0.32 of its potential returns per unit of risk. Supalai Public is currently generating about -0.29 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. Supalai Public
Performance |
| Timeline |
| SCB X Public |
| Supalai Public |
SCB X and Supalai Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCB X and Supalai Public
The main advantage of trading using opposite SCB X and Supalai Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCB X position performs unexpectedly, Supalai 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 Supalai Public will offset losses from the drop in Supalai Public'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 |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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