Correlation Between Samart Digital and Micro Leasing
Can any of the company-specific risk be diversified away by investing in both Samart Digital and Micro Leasing 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 Samart Digital and Micro Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samart Digital Public and Micro Leasing Public, you can compare the effects of market volatilities on Samart Digital and Micro Leasing 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 Samart Digital with a short position of Micro Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samart Digital and Micro Leasing.
Diversification Opportunities for Samart Digital and Micro Leasing
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Samart and Micro is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Samart Digital Public and Micro Leasing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Micro Leasing Public and Samart Digital 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 Samart Digital Public are associated (or correlated) with Micro Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Micro Leasing Public has no effect on the direction of Samart Digital i.e., Samart Digital and Micro Leasing go up and down completely randomly.
Pair Corralation between Samart Digital and Micro Leasing
Assuming the 90 days trading horizon Samart Digital Public is expected to generate 5.32 times more return on investment than Micro Leasing. However, Samart Digital is 5.32 times more volatile than Micro Leasing Public. It trades about 0.18 of its potential returns per unit of risk. Micro Leasing Public is currently generating about -0.4 per unit of risk. If you would invest 4.00 in Samart Digital Public on August 27, 2024 and sell it today you would earn a total of 2.00 from holding Samart Digital Public or generate 50.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Samart Digital Public vs. Micro Leasing Public
Performance |
| Timeline |
| Samart Digital Public |
| Micro Leasing Public |
Samart Digital and Micro Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Samart Digital and Micro Leasing
The main advantage of trading using opposite Samart Digital and Micro Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samart Digital position performs unexpectedly, Micro Leasing 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 Micro Leasing will offset losses from the drop in Micro Leasing's long position.| Samart Digital vs. Jay Mart Public | Samart Digital vs. Samart Public | Samart Digital vs. Jasmine International Public | Samart Digital vs. Internet Thailand Public |
| Micro Leasing vs. Amanah Leasing Public | Micro Leasing vs. Infraset Public | Micro Leasing vs. JMT Network Services |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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