Correlation Between Silicon Craft and Premier Marketing
Can any of the company-specific risk be diversified away by investing in both Silicon Craft and Premier Marketing 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 Silicon Craft and Premier Marketing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silicon Craft Technology and Premier Marketing Public, you can compare the effects of market volatilities on Silicon Craft and Premier Marketing 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 Premier Marketing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Craft and Premier Marketing.
Diversification Opportunities for Silicon Craft and Premier Marketing
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Silicon and Premier is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Craft Technology and Premier Marketing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Premier Marketing Public 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 Premier Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Premier Marketing Public has no effect on the direction of Silicon Craft i.e., Silicon Craft and Premier Marketing go up and down completely randomly.
Pair Corralation between Silicon Craft and Premier Marketing
Assuming the 90 days trading horizon Silicon Craft Technology is expected to under-perform the Premier Marketing. In addition to that, Silicon Craft is 2.06 times more volatile than Premier Marketing Public. It trades about -0.02 of its total potential returns per unit of risk. Premier Marketing Public is currently generating about 0.03 per unit of volatility. If you would invest 836.00 in Premier Marketing Public on August 26, 2024 and sell it today you would earn a total of 109.00 from holding Premier Marketing Public or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Craft Technology vs. Premier Marketing Public
Performance |
| Timeline |
| Silicon Craft Technology |
| Premier Marketing Public |
Silicon Craft and Premier Marketing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Craft and Premier Marketing
The main advantage of trading using opposite Silicon Craft and Premier Marketing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Craft position performs unexpectedly, Premier Marketing 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 Premier Marketing will offset losses from the drop in Premier Marketing'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 |
| Premier Marketing vs. CP ALL Public | Premier Marketing vs. Thai Union Group | Premier Marketing vs. Minor International Public | Premier Marketing vs. Central Pattana 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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