Correlation Between SCG PACKAGING and Praram 9
Can any of the company-specific risk be diversified away by investing in both SCG PACKAGING and Praram 9 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 Praram 9 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 Praram 9 Hospital, you can compare the effects of market volatilities on SCG PACKAGING and Praram 9 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 Praram 9. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCG PACKAGING and Praram 9.
Diversification Opportunities for SCG PACKAGING and Praram 9
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SCG and Praram is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding SCG PACKAGING PCL NVDR and Praram 9 Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praram 9 Hospital 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 Praram 9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praram 9 Hospital has no effect on the direction of SCG PACKAGING i.e., SCG PACKAGING and Praram 9 go up and down completely randomly.
Pair Corralation between SCG PACKAGING and Praram 9
Assuming the 90 days trading horizon SCG PACKAGING PCL NVDR is expected to under-perform the Praram 9. In addition to that, SCG PACKAGING is 1.17 times more volatile than Praram 9 Hospital. It trades about -0.19 of its total potential returns per unit of risk. Praram 9 Hospital is currently generating about -0.03 per unit of volatility. If you would invest 2,310 in Praram 9 Hospital on November 27, 2024 and sell it today you would lose (40.00) from holding Praram 9 Hospital or give up 1.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCG PACKAGING PCL NVDR vs. Praram 9 Hospital
Performance |
| Timeline |
| SCG PACKAGING PCL |
| Praram 9 Hospital |
SCG PACKAGING and Praram 9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCG PACKAGING and Praram 9
The main advantage of trading using opposite SCG PACKAGING and Praram 9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCG PACKAGING position performs unexpectedly, Praram 9 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 Praram 9 will offset losses from the drop in Praram 9'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 |
| Praram 9 vs. Bangkok Dusit Medical | Praram 9 vs. Bumrungrad Hospital PCL | Praram 9 vs. Bangkok Chain Hospital | Praram 9 vs. Rajthanee Hospital 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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