Correlation Between Singer Thailand and Forth Public
Can any of the company-specific risk be diversified away by investing in both Singer Thailand and Forth 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 Singer Thailand and Forth Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singer Thailand Public and Forth Public, you can compare the effects of market volatilities on Singer Thailand and Forth 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 Singer Thailand with a short position of Forth Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singer Thailand and Forth Public.
Diversification Opportunities for Singer Thailand and Forth Public
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Singer and Forth is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Singer Thailand Public and Forth Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forth Public and Singer Thailand 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 Singer Thailand Public are associated (or correlated) with Forth Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forth Public has no effect on the direction of Singer Thailand i.e., Singer Thailand and Forth Public go up and down completely randomly.
Pair Corralation between Singer Thailand and Forth Public
Assuming the 90 days trading horizon Singer Thailand Public is expected to under-perform the Forth Public. But the stock apears to be less risky and, when comparing its historical volatility, Singer Thailand Public is 1.24 times less risky than Forth Public. The stock trades about -0.29 of its potential returns per unit of risk. The Forth Public is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 1,280 in Forth Public on September 1, 2024 and sell it today you would lose (150.00) from holding Forth Public or give up 11.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Singer Thailand Public vs. Forth Public
Performance |
| Timeline |
| Singer Thailand Public |
| Forth Public |
Singer Thailand and Forth Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singer Thailand and Forth Public
The main advantage of trading using opposite Singer Thailand and Forth Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singer Thailand position performs unexpectedly, Forth 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 Forth Public will offset losses from the drop in Forth Public's long position.| Singer Thailand vs. Jay Mart Public | Singer Thailand vs. JMT Network Services | Singer Thailand vs. KCE Electronics Public | Singer Thailand vs. Srisawad Power 1979 |
| Forth Public vs. AP Public | Forth Public vs. Jasmine International Public | Forth Public vs. Asia Plus Group | Forth Public vs. Bangchak 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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