Correlation Between Singer Thailand and Sabuy Technology
Can any of the company-specific risk be diversified away by investing in both Singer Thailand and Sabuy Technology 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 Sabuy Technology 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 Sabuy Technology Public, you can compare the effects of market volatilities on Singer Thailand and Sabuy Technology 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 Sabuy Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singer Thailand and Sabuy Technology.
Diversification Opportunities for Singer Thailand and Sabuy Technology
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Singer and Sabuy is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Singer Thailand Public and Sabuy Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabuy Technology 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 Sabuy Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabuy Technology Public has no effect on the direction of Singer Thailand i.e., Singer Thailand and Sabuy Technology go up and down completely randomly.
Pair Corralation between Singer Thailand and Sabuy Technology
Assuming the 90 days trading horizon Singer Thailand Public is expected to generate 0.53 times more return on investment than Sabuy Technology. However, Singer Thailand Public is 1.89 times less risky than Sabuy Technology. It trades about -0.36 of its potential returns per unit of risk. Sabuy Technology Public is currently generating about -0.41 per unit of risk. If you would invest 1,080 in Singer Thailand Public on August 30, 2024 and sell it today you would lose (210.00) from holding Singer Thailand Public or give up 19.44% 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. Sabuy Technology Public
Performance |
| Timeline |
| Singer Thailand Public |
| Sabuy Technology Public |
Singer Thailand and Sabuy Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singer Thailand and Sabuy Technology
The main advantage of trading using opposite Singer Thailand and Sabuy Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singer Thailand position performs unexpectedly, Sabuy Technology 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 Sabuy Technology will offset losses from the drop in Sabuy Technology'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 |
| Sabuy Technology vs. Jay Mart Public | Sabuy Technology vs. Forth Public | Sabuy Technology vs. Singer Thailand Public | Sabuy Technology vs. PTT Oil and |
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 Stocks Directory module to find actively traded stocks across global markets.
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