Correlation Between Sikarin Public and GMM Grammy
Can any of the company-specific risk be diversified away by investing in both Sikarin Public and GMM Grammy 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 GMM Grammy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sikarin Public and GMM Grammy Public, you can compare the effects of market volatilities on Sikarin Public and GMM Grammy 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 GMM Grammy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sikarin Public and GMM Grammy.
Diversification Opportunities for Sikarin Public and GMM Grammy
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sikarin and GMM is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Sikarin Public and GMM Grammy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GMM Grammy 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 GMM Grammy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GMM Grammy Public has no effect on the direction of Sikarin Public i.e., Sikarin Public and GMM Grammy go up and down completely randomly.
Pair Corralation between Sikarin Public and GMM Grammy
Assuming the 90 days trading horizon Sikarin Public is expected to generate 0.82 times more return on investment than GMM Grammy. However, Sikarin Public is 1.21 times less risky than GMM Grammy. It trades about 0.06 of its potential returns per unit of risk. GMM Grammy Public is currently generating about -0.08 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 10.00 from holding Sikarin Public or generate 1.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Sikarin Public vs. GMM Grammy Public
Performance |
| Timeline |
| Sikarin Public |
| GMM Grammy Public |
Sikarin Public and GMM Grammy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sikarin Public and GMM Grammy
The main advantage of trading using opposite Sikarin Public and GMM Grammy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sikarin Public position performs unexpectedly, GMM Grammy 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 GMM Grammy will offset losses from the drop in GMM Grammy'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 |
| GMM Grammy vs. SRI TRANG GLOVES | GMM Grammy vs. AEON Thana Sinsap | GMM Grammy vs. Asian Alliance International | GMM Grammy vs. Sikarin 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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