Correlation Between Seafco Public and Srithai Superware
Can any of the company-specific risk be diversified away by investing in both Seafco Public and Srithai Superware 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 Seafco Public and Srithai Superware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seafco Public and Srithai Superware Public, you can compare the effects of market volatilities on Seafco Public and Srithai Superware 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 Seafco Public with a short position of Srithai Superware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seafco Public and Srithai Superware.
Diversification Opportunities for Seafco Public and Srithai Superware
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Seafco and Srithai is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Seafco Public and Srithai Superware Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Srithai Superware Public and Seafco Public 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 Seafco Public are associated (or correlated) with Srithai Superware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Srithai Superware Public has no effect on the direction of Seafco Public i.e., Seafco Public and Srithai Superware go up and down completely randomly.
Pair Corralation between Seafco Public and Srithai Superware
Assuming the 90 days trading horizon Seafco Public is expected to under-perform the Srithai Superware. In addition to that, Seafco Public is 1.48 times more volatile than Srithai Superware Public. It trades about -0.27 of its total potential returns per unit of risk. Srithai Superware Public is currently generating about 0.08 per unit of volatility. If you would invest 134.00 in Srithai Superware Public on August 26, 2024 and sell it today you would earn a total of 4.00 from holding Srithai Superware Public or generate 2.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seafco Public vs. Srithai Superware Public
Performance |
| Timeline |
| Seafco Public |
| Srithai Superware Public |
Seafco Public and Srithai Superware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seafco Public and Srithai Superware
The main advantage of trading using opposite Seafco Public and Srithai Superware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seafco Public position performs unexpectedly, Srithai Superware 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 Srithai Superware will offset losses from the drop in Srithai Superware's long position.| Seafco Public vs. Tata Steel Public | Seafco Public vs. Thaifoods Group Public | Seafco Public vs. TMT Steel Public | Seafco Public vs. The Erawan Group |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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