Correlation Between SCG PACKAGING and Thaire Life
Can any of the company-specific risk be diversified away by investing in both SCG PACKAGING and Thaire Life 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 Thaire Life 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 Thaire Life Assurance, you can compare the effects of market volatilities on SCG PACKAGING and Thaire Life 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 Thaire Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCG PACKAGING and Thaire Life.
Diversification Opportunities for SCG PACKAGING and Thaire Life
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between SCG and Thaire is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding SCG PACKAGING PCL NVDR and Thaire Life Assurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaire Life Assurance 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 Thaire Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaire Life Assurance has no effect on the direction of SCG PACKAGING i.e., SCG PACKAGING and Thaire Life go up and down completely randomly.
Pair Corralation between SCG PACKAGING and Thaire Life
Assuming the 90 days trading horizon SCG PACKAGING PCL NVDR is expected to under-perform the Thaire Life. But the stock apears to be less risky and, when comparing its historical volatility, SCG PACKAGING PCL NVDR is 25.85 times less risky than Thaire Life. The stock trades about -0.09 of its potential returns per unit of risk. The Thaire Life Assurance is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 181.00 in Thaire Life Assurance on September 1, 2024 and sell it today you would lose (14.00) from holding Thaire Life Assurance or give up 7.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.45% |
| Values | Daily Returns |
SCG PACKAGING PCL NVDR vs. Thaire Life Assurance
Performance |
| Timeline |
| SCG PACKAGING PCL |
| Thaire Life Assurance |
SCG PACKAGING and Thaire Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCG PACKAGING and Thaire Life
The main advantage of trading using opposite SCG PACKAGING and Thaire Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCG PACKAGING position performs unexpectedly, Thaire Life 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 Thaire Life will offset losses from the drop in Thaire Life'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 |
| Thaire Life vs. Thai Reinsurance Public | Thaire Life vs. Ratchthani Leasing Public | Thaire Life vs. Bangkok Life Assurance | Thaire Life vs. Thanachart Capital 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |