Correlation Between Stock Exchange and SiS Distribution
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and SiS Distribution 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 Stock Exchange and SiS Distribution into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and SiS Distribution Public, you can compare the effects of market volatilities on Stock Exchange and SiS Distribution 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 Stock Exchange with a short position of SiS Distribution. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and SiS Distribution.
Diversification Opportunities for Stock Exchange and SiS Distribution
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Stock and SiS is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and SiS Distribution Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SiS Distribution Public and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with SiS Distribution. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SiS Distribution Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and SiS Distribution go up and down completely randomly.
Pair Corralation between Stock Exchange and SiS Distribution
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the SiS Distribution. But the index apears to be less risky and, when comparing its historical volatility, Stock Exchange Of is 6.29 times less risky than SiS Distribution. The index trades about -0.06 of its potential returns per unit of risk. The SiS Distribution Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,575 in SiS Distribution Public on August 25, 2024 and sell it today you would earn a total of 225.00 from holding SiS Distribution Public or generate 8.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Stock Exchange Of vs. SiS Distribution Public
Performance |
| Timeline |
Stock Exchange and SiS Distribution Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
SiS Distribution Public
Pair trading matchups for SiS Distribution
Pair Trading with Stock Exchange and SiS Distribution
The main advantage of trading using opposite Stock Exchange and SiS Distribution positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, SiS Distribution 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 SiS Distribution will offset losses from the drop in SiS Distribution's long position.| Stock Exchange vs. Bank of Ayudhya | Stock Exchange vs. ABSOLUTE CLEAN ENERGY | Stock Exchange vs. DOHOME | Stock Exchange vs. Srinanaporn Marketing Public |
| SiS Distribution vs. AP Public | SiS Distribution vs. Jasmine International Public | SiS Distribution vs. Asia Plus Group | SiS Distribution vs. Bangkok Aviation Fuel |
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 Stocks Directory module to find actively traded stocks across global markets.
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