Correlation Between Silicon Craft and SC Asset
Can any of the company-specific risk be diversified away by investing in both Silicon Craft and SC Asset 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 SC Asset 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 SC Asset, you can compare the effects of market volatilities on Silicon Craft and SC Asset 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 SC Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Craft and SC Asset.
Diversification Opportunities for Silicon Craft and SC Asset
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Silicon and SC Asset is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Craft Technology and SC Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SC Asset 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 SC Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SC Asset has no effect on the direction of Silicon Craft i.e., Silicon Craft and SC Asset go up and down completely randomly.
Pair Corralation between Silicon Craft and SC Asset
Assuming the 90 days trading horizon Silicon Craft Technology is expected to under-perform the SC Asset. In addition to that, Silicon Craft is 4.01 times more volatile than SC Asset. It trades about -0.37 of its total potential returns per unit of risk. SC Asset is currently generating about -0.03 per unit of volatility. If you would invest 294.00 in SC Asset on September 12, 2024 and sell it today you would lose (2.00) from holding SC Asset or give up 0.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Craft Technology vs. SC Asset
Performance |
| Timeline |
| Silicon Craft Technology |
| SC Asset |
Silicon Craft and SC Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Craft and SC Asset
The main advantage of trading using opposite Silicon Craft and SC Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Craft position performs unexpectedly, SC Asset 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 SC Asset will offset losses from the drop in SC Asset'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 |
| SC Asset vs. Phatra Leasing Public | SC Asset vs. Mitsib Leasing Public | SC Asset vs. AJ Advance Technology | SC Asset vs. Global Green Chemicals |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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