Correlation Between SCG PACKAGING and Synnex Public
Can any of the company-specific risk be diversified away by investing in both SCG PACKAGING and Synnex 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 SCG PACKAGING and Synnex Public 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 Synnex Public, you can compare the effects of market volatilities on SCG PACKAGING and Synnex 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 SCG PACKAGING with a short position of Synnex Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCG PACKAGING and Synnex Public.
Diversification Opportunities for SCG PACKAGING and Synnex Public
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SCG and Synnex is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding SCG PACKAGING PCL NVDR and Synnex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synnex 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 Synnex Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synnex Public has no effect on the direction of SCG PACKAGING i.e., SCG PACKAGING and Synnex Public go up and down completely randomly.
Pair Corralation between SCG PACKAGING and Synnex Public
Assuming the 90 days trading horizon SCG PACKAGING PCL NVDR is expected to under-perform the Synnex Public. In addition to that, SCG PACKAGING is 4.07 times more volatile than Synnex Public. It trades about -0.26 of its total potential returns per unit of risk. Synnex Public is currently generating about 0.04 per unit of volatility. If you would invest 1,550 in Synnex Public on August 30, 2024 and sell it today you would earn a total of 20.00 from holding Synnex Public or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCG PACKAGING PCL NVDR vs. Synnex Public
Performance |
| Timeline |
| SCG PACKAGING PCL |
| Synnex Public |
SCG PACKAGING and Synnex Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCG PACKAGING and Synnex Public
The main advantage of trading using opposite SCG PACKAGING and Synnex Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCG PACKAGING position performs unexpectedly, Synnex 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 Synnex Public will offset losses from the drop in Synnex Public'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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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