Correlation Between SCG Packaging and Regional Container
Can any of the company-specific risk be diversified away by investing in both SCG Packaging and Regional Container 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 Regional Container 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 Regional Container Lines, you can compare the effects of market volatilities on SCG Packaging and Regional Container 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 Regional Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCG Packaging and Regional Container.
Diversification Opportunities for SCG Packaging and Regional Container
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between SCG and Regional is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding SCG Packaging Public and Regional Container Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regional Container Lines 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 Regional Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regional Container Lines has no effect on the direction of SCG Packaging i.e., SCG Packaging and Regional Container go up and down completely randomly.
Pair Corralation between SCG Packaging and Regional Container
Assuming the 90 days trading horizon SCG Packaging Public is expected to generate 24.77 times more return on investment than Regional Container. However, SCG Packaging is 24.77 times more volatile than Regional Container Lines. It trades about 0.08 of its potential returns per unit of risk. Regional Container Lines is currently generating about 0.01 per unit of risk. If you would invest 3,416 in SCG Packaging Public on September 1, 2024 and sell it today you would lose (1,276) from holding SCG Packaging Public or give up 37.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
SCG Packaging Public vs. Regional Container Lines
Performance |
| Timeline |
| SCG Packaging Public |
| Regional Container Lines |
SCG Packaging and Regional Container Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCG Packaging and Regional Container
The main advantage of trading using opposite SCG Packaging and Regional Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCG Packaging position performs unexpectedly, Regional Container 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 Regional Container will offset losses from the drop in Regional Container'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 |
| Regional Container vs. Precious Shipping Public | Regional Container vs. Thoresen Thai Agencies | Regional Container vs. The Siam Cement | Regional Container vs. PTT 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |