Correlation Between SCG PACKAGING and Haad Thip
Can any of the company-specific risk be diversified away by investing in both SCG PACKAGING and Haad Thip 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 Haad Thip 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 Haad Thip Public, you can compare the effects of market volatilities on SCG PACKAGING and Haad Thip 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 Haad Thip. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCG PACKAGING and Haad Thip.
Diversification Opportunities for SCG PACKAGING and Haad Thip
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SCG and Haad is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding SCG PACKAGING PCL NVDR and Haad Thip Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haad Thip 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 Haad Thip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haad Thip Public has no effect on the direction of SCG PACKAGING i.e., SCG PACKAGING and Haad Thip go up and down completely randomly.
Pair Corralation between SCG PACKAGING and Haad Thip
Assuming the 90 days trading horizon SCG PACKAGING PCL NVDR is expected to under-perform the Haad Thip. In addition to that, SCG PACKAGING is 5.64 times more volatile than Haad Thip Public. It trades about -0.26 of its total potential returns per unit of risk. Haad Thip Public is currently generating about -0.09 per unit of volatility. If you would invest 1,670 in Haad Thip Public on September 1, 2024 and sell it today you would lose (50.00) from holding Haad Thip Public or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCG PACKAGING PCL NVDR vs. Haad Thip Public
Performance |
| Timeline |
| SCG PACKAGING PCL |
| Haad Thip Public |
SCG PACKAGING and Haad Thip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCG PACKAGING and Haad Thip
The main advantage of trading using opposite SCG PACKAGING and Haad Thip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCG PACKAGING position performs unexpectedly, Haad Thip 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 Haad Thip will offset losses from the drop in Haad Thip's long position.| SCG PACKAGING vs. PTT Public | SCG PACKAGING vs. Kasikornbank Public | SCG PACKAGING vs. The Siam Cement | SCG PACKAGING vs. OSOTSPA PCL NVDR |
| Haad Thip vs. Charoen Pokphand Foods | Haad Thip vs. Carabao Group Public | Haad Thip vs. Home Product Center | Haad Thip vs. Ichitan Group 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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