Correlation Between Sikarin Public and Aqua Public
Can any of the company-specific risk be diversified away by investing in both Sikarin Public and Aqua 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 Sikarin Public and Aqua Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sikarin Public and Aqua Public, you can compare the effects of market volatilities on Sikarin Public and Aqua 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 Sikarin Public with a short position of Aqua Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sikarin Public and Aqua Public.
Diversification Opportunities for Sikarin Public and Aqua Public
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sikarin and Aqua is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sikarin Public and Aqua Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqua Public 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 Aqua Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqua Public has no effect on the direction of Sikarin Public i.e., Sikarin Public and Aqua Public go up and down completely randomly.
Pair Corralation between Sikarin Public and Aqua Public
Assuming the 90 days trading horizon Sikarin Public is expected to generate 1.59 times less return on investment than Aqua Public. But when comparing it to its historical volatility, Sikarin Public is 2.79 times less risky than Aqua Public. It trades about 0.13 of its potential returns per unit of risk. Aqua Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 33.00 in Aqua Public on September 13, 2024 and sell it today you would earn a total of 1.00 from holding Aqua Public or generate 3.03% 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. Aqua Public
Performance |
| Timeline |
| Sikarin Public |
| Aqua Public |
Sikarin Public and Aqua Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sikarin Public and Aqua Public
The main advantage of trading using opposite Sikarin Public and Aqua Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sikarin Public position performs unexpectedly, Aqua 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 Aqua Public will offset losses from the drop in Aqua Public'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 |
| Aqua Public vs. Synnex Public | Aqua Public vs. SVI Public | Aqua Public vs. Interlink Communication Public | Aqua Public vs. The Erawan Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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