Correlation Between Sikarin Public and AEON Thana
Can any of the company-specific risk be diversified away by investing in both Sikarin Public and AEON Thana 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 Sikarin Public and AEON Thana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sikarin Public and AEON Thana Sinsap, you can compare the effects of market volatilities on Sikarin Public and AEON Thana 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 Sikarin Public with a short position of AEON Thana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sikarin Public and AEON Thana.
Diversification Opportunities for Sikarin Public and AEON Thana
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sikarin and AEON is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Sikarin Public and AEON Thana Sinsap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEON Thana Sinsap and Sikarin Public 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 Sikarin Public are associated (or correlated) with AEON Thana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEON Thana Sinsap has no effect on the direction of Sikarin Public i.e., Sikarin Public and AEON Thana go up and down completely randomly.
Pair Corralation between Sikarin Public and AEON Thana
Assuming the 90 days trading horizon Sikarin Public is expected to generate 0.47 times more return on investment than AEON Thana. However, Sikarin Public is 2.13 times less risky than AEON Thana. It trades about 0.09 of its potential returns per unit of risk. AEON Thana Sinsap is currently generating about -0.19 per unit of risk. If you would invest 925.00 in Sikarin Public on September 5, 2024 and sell it today you would earn a total of 15.00 from holding Sikarin Public or generate 1.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sikarin Public vs. AEON Thana Sinsap
Performance |
| Timeline |
| Sikarin Public |
| AEON Thana Sinsap |
Sikarin Public and AEON Thana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sikarin Public and AEON Thana
The main advantage of trading using opposite Sikarin Public and AEON Thana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sikarin Public position performs unexpectedly, AEON Thana 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 AEON Thana will offset losses from the drop in AEON Thana's long position.| Sikarin Public vs. Principal Capital Public | Sikarin Public vs. Ramkhamhaeng Hospital Public | Sikarin Public vs. Nonthavej Hospital Public | Sikarin Public vs. Ekachai Medical Care |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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