Correlation Between Singer Thailand and Mega Lifesciences
Can any of the company-specific risk be diversified away by investing in both Singer Thailand and Mega Lifesciences 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 Mega Lifesciences 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 Mega Lifesciences Public, you can compare the effects of market volatilities on Singer Thailand and Mega Lifesciences 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 Mega Lifesciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singer Thailand and Mega Lifesciences.
Diversification Opportunities for Singer Thailand and Mega Lifesciences
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Singer and Mega is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Singer Thailand Public and Mega Lifesciences Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mega Lifesciences 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 Mega Lifesciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mega Lifesciences Public has no effect on the direction of Singer Thailand i.e., Singer Thailand and Mega Lifesciences go up and down completely randomly.
Pair Corralation between Singer Thailand and Mega Lifesciences
Assuming the 90 days trading horizon Singer Thailand Public is expected to generate 33.08 times more return on investment than Mega Lifesciences. However, Singer Thailand is 33.08 times more volatile than Mega Lifesciences Public. It trades about 0.05 of its potential returns per unit of risk. Mega Lifesciences Public is currently generating about -0.01 per unit of risk. If you would invest 1,120 in Singer Thailand Public on September 1, 2024 and sell it today you would lose (210.00) from holding Singer Thailand Public or give up 18.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Singer Thailand Public vs. Mega Lifesciences Public
Performance |
| Timeline |
| Singer Thailand Public |
| Mega Lifesciences Public |
Singer Thailand and Mega Lifesciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singer Thailand and Mega Lifesciences
The main advantage of trading using opposite Singer Thailand and Mega Lifesciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singer Thailand position performs unexpectedly, Mega Lifesciences 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 Mega Lifesciences will offset losses from the drop in Mega Lifesciences' 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 |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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