Correlation Between SiS Distribution and Shrinkflex Public
Can any of the company-specific risk be diversified away by investing in both SiS Distribution and Shrinkflex 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 SiS Distribution and Shrinkflex Public 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 Shrinkflex Public, you can compare the effects of market volatilities on SiS Distribution and Shrinkflex 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 SiS Distribution with a short position of Shrinkflex Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of SiS Distribution and Shrinkflex Public.
Diversification Opportunities for SiS Distribution and Shrinkflex Public
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SiS and Shrinkflex is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding SiS Distribution Public and Shrinkflex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shrinkflex 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 Shrinkflex Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shrinkflex Public has no effect on the direction of SiS Distribution i.e., SiS Distribution and Shrinkflex Public go up and down completely randomly.
Pair Corralation between SiS Distribution and Shrinkflex Public
Assuming the 90 days trading horizon SiS Distribution Public is expected to generate 33.92 times more return on investment than Shrinkflex Public. However, SiS Distribution is 33.92 times more volatile than Shrinkflex Public. It trades about 0.05 of its potential returns per unit of risk. Shrinkflex Public is currently generating about -0.07 per unit of risk. If you would invest 2,006 in SiS Distribution Public on September 12, 2024 and sell it today you would earn a total of 919.00 from holding SiS Distribution Public or generate 45.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.83% |
| Values | Daily Returns |
SiS Distribution Public vs. Shrinkflex Public
Performance |
| Timeline |
| SiS Distribution Public |
| Shrinkflex Public |
SiS Distribution and Shrinkflex Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SiS Distribution and Shrinkflex Public
The main advantage of trading using opposite SiS Distribution and Shrinkflex Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SiS Distribution position performs unexpectedly, Shrinkflex 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 Shrinkflex Public will offset losses from the drop in Shrinkflex Public'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 |
| Shrinkflex Public vs. Silicon Craft Technology | Shrinkflex Public vs. Sirakorn PCL | Shrinkflex Public vs. Selic Corp Public | Shrinkflex Public vs. SiS Distribution 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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