Correlation Between SCG PACKAGING and Vintcom Technology
Can any of the company-specific risk be diversified away by investing in both SCG PACKAGING and Vintcom Technology 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 Vintcom Technology 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 Vintcom Technology PCL, you can compare the effects of market volatilities on SCG PACKAGING and Vintcom Technology 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 Vintcom Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCG PACKAGING and Vintcom Technology.
Diversification Opportunities for SCG PACKAGING and Vintcom Technology
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SCG and Vintcom is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding SCG PACKAGING PCL NVDR and Vintcom Technology PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vintcom Technology PCL 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 Vintcom Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vintcom Technology PCL has no effect on the direction of SCG PACKAGING i.e., SCG PACKAGING and Vintcom Technology go up and down completely randomly.
Pair Corralation between SCG PACKAGING and Vintcom Technology
Assuming the 90 days trading horizon SCG PACKAGING PCL NVDR is expected to under-perform the Vintcom Technology. In addition to that, SCG PACKAGING is 5.8 times more volatile than Vintcom Technology PCL. It trades about -0.26 of its total potential returns per unit of risk. Vintcom Technology PCL is currently generating about -0.24 per unit of volatility. If you would invest 266.00 in Vintcom Technology PCL on September 1, 2024 and sell it today you would lose (20.00) from holding Vintcom Technology PCL or give up 7.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SCG PACKAGING PCL NVDR vs. Vintcom Technology PCL
Performance |
| Timeline |
| SCG PACKAGING PCL |
| Vintcom Technology PCL |
SCG PACKAGING and Vintcom Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCG PACKAGING and Vintcom Technology
The main advantage of trading using opposite SCG PACKAGING and Vintcom Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCG PACKAGING position performs unexpectedly, Vintcom Technology 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 Vintcom Technology will offset losses from the drop in Vintcom Technology'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 |
| Vintcom Technology vs. SiS Distribution Public | Vintcom Technology vs. S P V | Vintcom Technology vs. Synnex Public | Vintcom Technology vs. SVI 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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