Correlation Between SCG Packaging and Betagro PCL
Can any of the company-specific risk be diversified away by investing in both SCG Packaging and Betagro PCL 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 Betagro PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCG Packaging Public and Betagro PCL, you can compare the effects of market volatilities on SCG Packaging and Betagro PCL 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 Betagro PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCG Packaging and Betagro PCL.
Diversification Opportunities for SCG Packaging and Betagro PCL
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SCG and Betagro is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding SCG Packaging Public and Betagro PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Betagro 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 Public are associated (or correlated) with Betagro PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Betagro PCL has no effect on the direction of SCG Packaging i.e., SCG Packaging and Betagro PCL go up and down completely randomly.
Pair Corralation between SCG Packaging and Betagro PCL
Assuming the 90 days trading horizon SCG Packaging Public is expected to generate 38.77 times more return on investment than Betagro PCL. However, SCG Packaging is 38.77 times more volatile than Betagro PCL. It trades about 0.05 of its potential returns per unit of risk. Betagro PCL is currently generating about -0.04 per unit of risk. If you would invest 3,746 in SCG Packaging Public on September 2, 2024 and sell it today you would lose (1,606) from holding SCG Packaging Public or give up 42.87% 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 Public vs. Betagro PCL
Performance |
| Timeline |
| SCG Packaging Public |
| Betagro PCL |
SCG Packaging and Betagro PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCG Packaging and Betagro PCL
The main advantage of trading using opposite SCG Packaging and Betagro PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCG Packaging position performs unexpectedly, Betagro PCL 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 Betagro PCL will offset losses from the drop in Betagro PCL's long position.| SCG Packaging vs. Kingsmen CMTI Public | SCG Packaging vs. Project Planning Service | SCG Packaging vs. Power Solution Technologies | SCG Packaging vs. Hydrotek Public |
| Betagro PCL vs. Thai Life Insurance | Betagro PCL vs. Thai Union Group | Betagro PCL vs. SCG Packaging Public | Betagro PCL vs. Gulf Energy Development |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Transaction History View history of all your transactions and understand their impact on performance |