Correlation Between Silicon Craft and Central Plaza
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By analyzing existing cross correlation between Silicon Craft Technology and Central Plaza Hotel, you can compare the effects of market volatilities on Silicon Craft and Central Plaza 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 Silicon Craft with a short position of Central Plaza. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Craft and Central Plaza.
Diversification Opportunities for Silicon Craft and Central Plaza
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Silicon and Central is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Craft Technology and Central Plaza Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plaza Hotel and Silicon Craft 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 Silicon Craft Technology are associated (or correlated) with Central Plaza. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plaza Hotel has no effect on the direction of Silicon Craft i.e., Silicon Craft and Central Plaza go up and down completely randomly.
Pair Corralation between Silicon Craft and Central Plaza
Assuming the 90 days trading horizon Silicon Craft Technology is expected to under-perform the Central Plaza. But the stock apears to be less risky and, when comparing its historical volatility, Silicon Craft Technology is 24.38 times less risky than Central Plaza. The stock trades about -0.02 of its potential returns per unit of risk. The Central Plaza Hotel is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 4,938 in Central Plaza Hotel on September 14, 2024 and sell it today you would lose (1,438) from holding Central Plaza Hotel or give up 29.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Silicon Craft Technology vs. Central Plaza Hotel
Performance |
| Timeline |
| Silicon Craft Technology |
| Central Plaza Hotel |
Silicon Craft and Central Plaza Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Craft and Central Plaza
The main advantage of trading using opposite Silicon Craft and Central Plaza positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Craft position performs unexpectedly, Central Plaza 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 Central Plaza will offset losses from the drop in Central Plaza's long position.| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand Public |
| Central Plaza vs. AJ Advance Technology | Central Plaza vs. Silicon Craft Technology | Central Plaza vs. WHA Utilities and | Central Plaza vs. Earth Tech Environment |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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