Correlation Between Salee Printing and Business Online
Can any of the company-specific risk be diversified away by investing in both Salee Printing and Business Online 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 Salee Printing and Business Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Salee Printing Public and Business Online PCL, you can compare the effects of market volatilities on Salee Printing and Business Online 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 Salee Printing with a short position of Business Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Salee Printing and Business Online.
Diversification Opportunities for Salee Printing and Business Online
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Salee and Business is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Salee Printing Public and Business Online PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Business Online PCL and Salee Printing 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 Salee Printing Public are associated (or correlated) with Business Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Business Online PCL has no effect on the direction of Salee Printing i.e., Salee Printing and Business Online go up and down completely randomly.
Pair Corralation between Salee Printing and Business Online
Assuming the 90 days trading horizon Salee Printing Public is expected to generate 27.22 times more return on investment than Business Online. However, Salee Printing is 27.22 times more volatile than Business Online PCL. It trades about 0.04 of its potential returns per unit of risk. Business Online PCL is currently generating about -0.08 per unit of risk. If you would invest 66.00 in Salee Printing Public on September 1, 2024 and sell it today you would lose (17.00) from holding Salee Printing Public or give up 25.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.77% |
| Values | Daily Returns |
Salee Printing Public vs. Business Online PCL
Performance |
| Timeline |
| Salee Printing Public |
| Business Online PCL |
Salee Printing and Business Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Salee Printing and Business Online
The main advantage of trading using opposite Salee Printing and Business Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Salee Printing position performs unexpectedly, Business Online 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 Business Online will offset losses from the drop in Business Online's long position.| Salee Printing vs. S Pack Print | Salee Printing vs. Sahamitr Pressure Container | Salee Printing vs. Srithai Superware Public | Salee Printing vs. Sahamit Machinery Public |
| Business Online vs. Premier Technology Public | Business Online vs. Sea Oil Public | Business Online vs. Thai Mitsuwa Public | Business Online 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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