Correlation Between Sahamitr Pressure and SKijchai Enterprise
Can any of the company-specific risk be diversified away by investing in both Sahamitr Pressure and SKijchai Enterprise 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 SKijchai Enterprise 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 SKijchai Enterprise Public, you can compare the effects of market volatilities on Sahamitr Pressure and SKijchai Enterprise 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 SKijchai Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sahamitr Pressure and SKijchai Enterprise.
Diversification Opportunities for Sahamitr Pressure and SKijchai Enterprise
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sahamitr and SKijchai is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Sahamitr Pressure Container and SKijchai Enterprise Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKijchai Enterprise 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 SKijchai Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKijchai Enterprise has no effect on the direction of Sahamitr Pressure i.e., Sahamitr Pressure and SKijchai Enterprise go up and down completely randomly.
Pair Corralation between Sahamitr Pressure and SKijchai Enterprise
Assuming the 90 days trading horizon Sahamitr Pressure is expected to generate 1.06 times less return on investment than SKijchai Enterprise. But when comparing it to its historical volatility, Sahamitr Pressure Container is 1.0 times less risky than SKijchai Enterprise. It trades about 0.04 of its potential returns per unit of risk. SKijchai Enterprise Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 403.00 in SKijchai Enterprise Public on September 4, 2024 and sell it today you would earn a total of 137.00 from holding SKijchai Enterprise Public or generate 34.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sahamitr Pressure Container vs. SKijchai Enterprise Public
Performance |
| Timeline |
| Sahamitr Pressure |
| SKijchai Enterprise |
Sahamitr Pressure and SKijchai Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sahamitr Pressure and SKijchai Enterprise
The main advantage of trading using opposite Sahamitr Pressure and SKijchai Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sahamitr Pressure position performs unexpectedly, SKijchai Enterprise 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 SKijchai Enterprise will offset losses from the drop in SKijchai Enterprise's long position.| Sahamitr Pressure vs. PTT Public | Sahamitr Pressure vs. PTT Exploration and | Sahamitr Pressure vs. The Siam Cement | Sahamitr Pressure vs. CP ALL 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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