Correlation Between SCG PACKAGING and Amanah Leasing
Can any of the company-specific risk be diversified away by investing in both SCG PACKAGING and Amanah Leasing 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 SCG PACKAGING and Amanah Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCG PACKAGING PCL NVDR and Amanah Leasing Public, you can compare the effects of market volatilities on SCG PACKAGING and Amanah Leasing 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 SCG PACKAGING with a short position of Amanah Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCG PACKAGING and Amanah Leasing.
Diversification Opportunities for SCG PACKAGING and Amanah Leasing
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SCG and Amanah is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding SCG PACKAGING PCL NVDR and Amanah Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amanah Leasing Public and SCG PACKAGING 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 SCG PACKAGING PCL NVDR are associated (or correlated) with Amanah Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amanah Leasing Public has no effect on the direction of SCG PACKAGING i.e., SCG PACKAGING and Amanah Leasing go up and down completely randomly.
Pair Corralation between SCG PACKAGING and Amanah Leasing
Assuming the 90 days trading horizon SCG PACKAGING PCL NVDR is expected to under-perform the Amanah Leasing. In addition to that, SCG PACKAGING is 3.47 times more volatile than Amanah Leasing Public. It trades about -0.25 of its total potential returns per unit of risk. Amanah Leasing Public is currently generating about -0.48 per unit of volatility. If you would invest 134.00 in Amanah Leasing Public on August 29, 2024 and sell it today you would lose (30.00) from holding Amanah Leasing Public or give up 22.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
SCG PACKAGING PCL NVDR vs. Amanah Leasing Public
Performance |
| Timeline |
| SCG PACKAGING PCL |
| Amanah Leasing Public |
SCG PACKAGING and Amanah Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCG PACKAGING and Amanah Leasing
The main advantage of trading using opposite SCG PACKAGING and Amanah Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCG PACKAGING position performs unexpectedly, Amanah Leasing 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 Amanah Leasing will offset losses from the drop in Amanah Leasing's long position.| SCG PACKAGING vs. Quality Houses Hotel | SCG PACKAGING vs. Quality Houses Property | SCG PACKAGING vs. CK Power Public | SCG PACKAGING vs. Thai Metal Drum |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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