Correlation Between Sikarin Public and Unique Mining
Can any of the company-specific risk be diversified away by investing in both Sikarin Public and Unique Mining 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 Unique Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sikarin Public and Unique Mining Services, you can compare the effects of market volatilities on Sikarin Public and Unique Mining 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 Unique Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sikarin Public and Unique Mining.
Diversification Opportunities for Sikarin Public and Unique Mining
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sikarin and Unique is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Sikarin Public and Unique Mining Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unique Mining Services 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 Unique Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unique Mining Services has no effect on the direction of Sikarin Public i.e., Sikarin Public and Unique Mining go up and down completely randomly.
Pair Corralation between Sikarin Public and Unique Mining
Assuming the 90 days trading horizon Sikarin Public is expected to generate 0.09 times more return on investment than Unique Mining. However, Sikarin Public is 11.61 times less risky than Unique Mining. It trades about 0.09 of its potential returns per unit of risk. Unique Mining Services is currently generating about -0.1 per unit of risk. If you would invest 920.00 in Sikarin Public on September 1, 2024 and sell it today you would earn a total of 15.00 from holding Sikarin Public or generate 1.63% 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. Unique Mining Services
Performance |
| Timeline |
| Sikarin Public |
| Unique Mining Services |
Sikarin Public and Unique Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sikarin Public and Unique Mining
The main advantage of trading using opposite Sikarin Public and Unique Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sikarin Public position performs unexpectedly, Unique Mining 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 Unique Mining will offset losses from the drop in Unique Mining's long position.| Sikarin Public vs. AP Public | Sikarin Public vs. Advanced Information Technology | Sikarin Public vs. AJ Plast Public | Sikarin Public vs. Berli Jucker Public |
| Unique Mining vs. Unimit Engineering Public | Unique Mining vs. Union Petrochemical Public | Unique Mining vs. Winner Group Enterprise | Unique Mining vs. Ubis 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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