Correlation Between Selic Corp and Sirakorn PCL
Can any of the company-specific risk be diversified away by investing in both Selic Corp and Sirakorn 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 Selic Corp and Sirakorn PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Selic Corp Public and Sirakorn PCL, you can compare the effects of market volatilities on Selic Corp and Sirakorn 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 Selic Corp with a short position of Sirakorn PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Selic Corp and Sirakorn PCL.
Diversification Opportunities for Selic Corp and Sirakorn PCL
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Selic and Sirakorn is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Selic Corp Public and Sirakorn PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sirakorn PCL and Selic Corp 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 Selic Corp Public are associated (or correlated) with Sirakorn PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sirakorn PCL has no effect on the direction of Selic Corp i.e., Selic Corp and Sirakorn PCL go up and down completely randomly.
Pair Corralation between Selic Corp and Sirakorn PCL
Assuming the 90 days trading horizon Selic Corp Public is expected to generate 14.17 times more return on investment than Sirakorn PCL. However, Selic Corp is 14.17 times more volatile than Sirakorn PCL. It trades about 0.04 of its potential returns per unit of risk. Sirakorn PCL is currently generating about -0.01 per unit of risk. If you would invest 267.00 in Selic Corp Public on September 3, 2024 and sell it today you would earn a total of 55.00 from holding Selic Corp Public or generate 20.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Selic Corp Public vs. Sirakorn PCL
Performance |
| Timeline |
| Selic Corp Public |
| Sirakorn PCL |
Selic Corp and Sirakorn PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Selic Corp and Sirakorn PCL
The main advantage of trading using opposite Selic Corp and Sirakorn PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Selic Corp position performs unexpectedly, Sirakorn 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 Sirakorn PCL will offset losses from the drop in Sirakorn PCL's long position.| Selic Corp vs. Netbay Public | Selic Corp vs. SiS Distribution Public | Selic Corp vs. Megachem Public | Selic Corp vs. SGF Capital Public |
| Sirakorn PCL vs. Aqua Public | Sirakorn PCL vs. Union Auction Public | Sirakorn PCL vs. Ama Marine Public | Sirakorn PCL vs. Akkhie Prakarn 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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