Correlation Between Stock Exchange and Sakol Energy
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Sakol Energy 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 Sakol Energy 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 Sakol Energy Public, you can compare the effects of market volatilities on Stock Exchange and Sakol Energy 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 Sakol Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Sakol Energy.
Diversification Opportunities for Stock Exchange and Sakol Energy
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stock and Sakol is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and Sakol Energy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sakol Energy 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 Sakol Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sakol Energy Public has no effect on the direction of Stock Exchange i.e., Stock Exchange and Sakol Energy go up and down completely randomly.
Pair Corralation between Stock Exchange and Sakol Energy
Assuming the 90 days trading horizon Stock Exchange Of is expected to under-perform the Sakol Energy. But the index apears to be less risky and, when comparing its historical volatility, Stock Exchange Of is 93.25 times less risky than Sakol Energy. The index trades about 0.0 of its potential returns per unit of risk. The Sakol Energy Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 46.00 in Sakol Energy Public on September 20, 2024 and sell it today you would lose (16.00) from holding Sakol Energy Public or give up 34.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. Sakol Energy Public
Performance |
| Timeline |
Stock Exchange and Sakol Energy Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
Sakol Energy Public
Pair trading matchups for Sakol Energy
Pair Trading with Stock Exchange and Sakol Energy
The main advantage of trading using opposite Stock Exchange and Sakol Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Sakol Energy 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 Sakol Energy will offset losses from the drop in Sakol Energy's long position.| Stock Exchange vs. Stars Microelectronics Public | Stock Exchange vs. CHAOSUA FOODS INDUSTRY | Stock Exchange vs. TMT Steel Public | Stock Exchange vs. Chiangmai Frozen Foods |
| Sakol Energy vs. Bangchak Public | Sakol Energy vs. IRPC Public | Sakol Energy vs. PTT Exploration and | Sakol Energy vs. PTG Energy PCL |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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