Correlation Between Sahamitr Pressure and Seafco Public
Can any of the company-specific risk be diversified away by investing in both Sahamitr Pressure and Seafco 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 Sahamitr Pressure and Seafco Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sahamitr Pressure Container and Seafco Public, you can compare the effects of market volatilities on Sahamitr Pressure and Seafco 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 Sahamitr Pressure with a short position of Seafco Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sahamitr Pressure and Seafco Public.
Diversification Opportunities for Sahamitr Pressure and Seafco Public
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sahamitr and Seafco is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Sahamitr Pressure Container and Seafco Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seafco Public and Sahamitr Pressure 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 Sahamitr Pressure Container are associated (or correlated) with Seafco Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seafco Public has no effect on the direction of Sahamitr Pressure i.e., Sahamitr Pressure and Seafco Public go up and down completely randomly.
Pair Corralation between Sahamitr Pressure and Seafco Public
Assuming the 90 days trading horizon Sahamitr Pressure Container is expected to generate 1.0 times more return on investment than Seafco Public. However, Sahamitr Pressure Container is 1.0 times less risky than Seafco Public. It trades about 0.05 of its potential returns per unit of risk. Seafco Public is currently generating about 0.04 per unit of risk. If you would invest 1,040 in Sahamitr Pressure Container on August 26, 2024 and sell it today you would lose (105.00) from holding Sahamitr Pressure Container or give up 10.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sahamitr Pressure Container vs. Seafco Public
Performance |
| Timeline |
| Sahamitr Pressure |
| Seafco Public |
Sahamitr Pressure and Seafco Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sahamitr Pressure and Seafco Public
The main advantage of trading using opposite Sahamitr Pressure and Seafco Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sahamitr Pressure position performs unexpectedly, Seafco 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 Seafco Public will offset losses from the drop in Seafco Public's long position.| Sahamitr Pressure vs. PTT Public | Sahamitr Pressure vs. PTT Exploration and | Sahamitr Pressure vs. CP ALL Public | Sahamitr Pressure vs. Kasikornbank Public |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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