Correlation Between Sahacogen Public and SE Education
Can any of the company-specific risk be diversified away by investing in both Sahacogen Public and SE Education 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 Sahacogen Public and SE Education into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sahacogen Public and SE Education Public, you can compare the effects of market volatilities on Sahacogen Public and SE Education 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 Sahacogen Public with a short position of SE Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sahacogen Public and SE Education.
Diversification Opportunities for Sahacogen Public and SE Education
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sahacogen and SE-ED is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Sahacogen Public and SE Education Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SE Education Public and Sahacogen Public 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 Sahacogen Public are associated (or correlated) with SE Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SE Education Public has no effect on the direction of Sahacogen Public i.e., Sahacogen Public and SE Education go up and down completely randomly.
Pair Corralation between Sahacogen Public and SE Education
Assuming the 90 days trading horizon Sahacogen Public is expected to generate 1.38 times more return on investment than SE Education. However, Sahacogen Public is 1.38 times more volatile than SE Education Public. It trades about -0.01 of its potential returns per unit of risk. SE Education Public is currently generating about -0.13 per unit of risk. If you would invest 340.00 in Sahacogen Public on November 3, 2024 and sell it today you would lose (4.00) from holding Sahacogen Public or give up 1.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sahacogen Public vs. SE Education Public
Performance |
| Timeline |
| Sahacogen Public |
| SE Education Public |
Sahacogen Public and SE Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sahacogen Public and SE Education
The main advantage of trading using opposite Sahacogen Public and SE Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sahacogen Public position performs unexpectedly, SE Education 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 SE Education will offset losses from the drop in SE Education's long position.| Sahacogen Public vs. PTT Public | Sahacogen Public vs. PTT Public | Sahacogen Public vs. Bangkok Bank Public | Sahacogen Public vs. Krung Thai Bank |
| SE Education vs. Bangkok Bank Public | SE Education vs. Kasikornbank Public | SE Education vs. Kasikornbank Public | SE Education vs. Krung Thai Bank |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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