Correlation Between SiS Distribution and Precious Shipping
Can any of the company-specific risk be diversified away by investing in both SiS Distribution and Precious Shipping 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 SiS Distribution and Precious Shipping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SiS Distribution Public and Precious Shipping Public, you can compare the effects of market volatilities on SiS Distribution and Precious Shipping 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 SiS Distribution with a short position of Precious Shipping. Check out your portfolio center. Please also check ongoing floating volatility patterns of SiS Distribution and Precious Shipping.
Diversification Opportunities for SiS Distribution and Precious Shipping
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between SiS and Precious is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding SiS Distribution Public and Precious Shipping Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precious Shipping Public and SiS Distribution 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 SiS Distribution Public are associated (or correlated) with Precious Shipping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precious Shipping Public has no effect on the direction of SiS Distribution i.e., SiS Distribution and Precious Shipping go up and down completely randomly.
Pair Corralation between SiS Distribution and Precious Shipping
Assuming the 90 days trading horizon SiS Distribution Public is expected to generate 17.44 times more return on investment than Precious Shipping. However, SiS Distribution is 17.44 times more volatile than Precious Shipping Public. It trades about 0.04 of its potential returns per unit of risk. Precious Shipping Public is currently generating about -0.05 per unit of risk. If you would invest 2,349 in SiS Distribution Public on November 5, 2024 and sell it today you would earn a total of 251.00 from holding SiS Distribution Public or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
SiS Distribution Public vs. Precious Shipping Public
Performance |
| Timeline |
| SiS Distribution Public |
| Precious Shipping Public |
SiS Distribution and Precious Shipping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SiS Distribution and Precious Shipping
The main advantage of trading using opposite SiS Distribution and Precious Shipping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SiS Distribution position performs unexpectedly, Precious Shipping 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 Precious Shipping will offset losses from the drop in Precious Shipping's long position.| SiS Distribution vs. Synnex Public | SiS Distribution vs. Hana Microelectronics Public | SiS Distribution vs. Singer Thailand Public | SiS Distribution vs. Jay Mart Public |
| Precious Shipping vs. Thoresen Thai Agencies | Precious Shipping vs. Regional Container Lines | Precious Shipping vs. The Siam Cement | Precious Shipping vs. PTT 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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