Correlation Between Silicon Craft and Thai Rubber
Can any of the company-specific risk be diversified away by investing in both Silicon Craft and Thai Rubber 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 Thai Rubber 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 Thai Rubber Latex, you can compare the effects of market volatilities on Silicon Craft and Thai Rubber 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 Thai Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Craft and Thai Rubber.
Diversification Opportunities for Silicon Craft and Thai Rubber
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Silicon and Thai is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Craft Technology and Thai Rubber Latex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Rubber Latex 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 Thai Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Rubber Latex has no effect on the direction of Silicon Craft i.e., Silicon Craft and Thai Rubber go up and down completely randomly.
Pair Corralation between Silicon Craft and Thai Rubber
Assuming the 90 days trading horizon Silicon Craft Technology is expected to under-perform the Thai Rubber. In addition to that, Silicon Craft is 1.84 times more volatile than Thai Rubber Latex. It trades about -0.29 of its total potential returns per unit of risk. Thai Rubber Latex is currently generating about -0.25 per unit of volatility. If you would invest 109.00 in Thai Rubber Latex on September 3, 2024 and sell it today you would lose (13.00) from holding Thai Rubber Latex or give up 11.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silicon Craft Technology vs. Thai Rubber Latex
Performance |
| Timeline |
| Silicon Craft Technology |
| Thai Rubber Latex |
Silicon Craft and Thai Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Craft and Thai Rubber
The main advantage of trading using opposite Silicon Craft and Thai Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Craft position performs unexpectedly, Thai Rubber 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 Thai Rubber will offset losses from the drop in Thai Rubber'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 |
| Thai Rubber vs. Thoresen Thai Agencies | Thai Rubber vs. Sri Trang Agro Industry | Thai Rubber vs. TPI Polene Public | Thai Rubber vs. Ratchthani Leasing 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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