Correlation Between SCG PACKAGING and T S
Can any of the company-specific risk be diversified away by investing in both SCG PACKAGING and T S 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 T S 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 T S Flour, you can compare the effects of market volatilities on SCG PACKAGING and T S 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 T S. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCG PACKAGING and T S.
Diversification Opportunities for SCG PACKAGING and T S
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SCG and TMILL is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding SCG PACKAGING PCL NVDR and T S Flour in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T S Flour 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 T S. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T S Flour has no effect on the direction of SCG PACKAGING i.e., SCG PACKAGING and T S go up and down completely randomly.
Pair Corralation between SCG PACKAGING and T S
Assuming the 90 days trading horizon SCG PACKAGING PCL NVDR is expected to under-perform the T S. In addition to that, SCG PACKAGING is 3.49 times more volatile than T S Flour. It trades about -0.26 of its total potential returns per unit of risk. T S Flour is currently generating about -0.26 per unit of volatility. If you would invest 362.00 in T S Flour on September 1, 2024 and sell it today you would lose (50.00) from holding T S Flour or give up 13.81% 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. T S Flour
Performance |
| Timeline |
| SCG PACKAGING PCL |
| T S Flour |
SCG PACKAGING and T S Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCG PACKAGING and T S
The main advantage of trading using opposite SCG PACKAGING and T S positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCG PACKAGING position performs unexpectedly, T S 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 T S will offset losses from the drop in T S'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 |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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