Correlation Between Silicon Craft and Shrinkflex Public
Can any of the company-specific risk be diversified away by investing in both Silicon Craft and Shrinkflex Public 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 Shrinkflex Public 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 Shrinkflex Public, you can compare the effects of market volatilities on Silicon Craft and Shrinkflex Public 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 Shrinkflex Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Craft and Shrinkflex Public.
Diversification Opportunities for Silicon Craft and Shrinkflex Public
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Silicon and Shrinkflex is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Craft Technology and Shrinkflex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shrinkflex 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 Shrinkflex Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shrinkflex Public has no effect on the direction of Silicon Craft i.e., Silicon Craft and Shrinkflex Public go up and down completely randomly.
Pair Corralation between Silicon Craft and Shrinkflex Public
Assuming the 90 days trading horizon Silicon Craft Technology is expected to under-perform the Shrinkflex Public. In addition to that, Silicon Craft is 1.44 times more volatile than Shrinkflex Public. It trades about -0.07 of its total potential returns per unit of risk. Shrinkflex Public is currently generating about -0.07 per unit of volatility. If you would invest 443.00 in Shrinkflex Public on September 12, 2024 and sell it today you would lose (143.00) from holding Shrinkflex Public or give up 32.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 92.83% |
| Values | Daily Returns |
Silicon Craft Technology vs. Shrinkflex Public
Performance |
| Timeline |
| Silicon Craft Technology |
| Shrinkflex Public |
Silicon Craft and Shrinkflex Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Craft and Shrinkflex Public
The main advantage of trading using opposite Silicon Craft and Shrinkflex Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Craft position performs unexpectedly, Shrinkflex Public 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 Shrinkflex Public will offset losses from the drop in Shrinkflex Public'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 |
| Shrinkflex Public vs. Silicon Craft Technology | Shrinkflex Public vs. Sirakorn PCL | Shrinkflex Public vs. Selic Corp Public | Shrinkflex Public vs. SiS Distribution 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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