Correlation Between Sahamitr Pressure and Sahamit Machinery
Can any of the company-specific risk be diversified away by investing in both Sahamitr Pressure and Sahamit Machinery 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 Sahamit Machinery 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 Sahamit Machinery Public, you can compare the effects of market volatilities on Sahamitr Pressure and Sahamit Machinery 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 Sahamit Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sahamitr Pressure and Sahamit Machinery.
Diversification Opportunities for Sahamitr Pressure and Sahamit Machinery
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sahamitr and Sahamit is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Sahamitr Pressure Container and Sahamit Machinery Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sahamit Machinery 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 Sahamit Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sahamit Machinery Public has no effect on the direction of Sahamitr Pressure i.e., Sahamitr Pressure and Sahamit Machinery go up and down completely randomly.
Pair Corralation between Sahamitr Pressure and Sahamit Machinery
Assuming the 90 days trading horizon Sahamitr Pressure Container is expected to generate 1.0 times more return on investment than Sahamit Machinery. However, Sahamitr Pressure is 1.0 times more volatile than Sahamit Machinery Public. It trades about 0.08 of its potential returns per unit of risk. Sahamit Machinery Public is currently generating about 0.08 per unit of risk. If you would invest 950.00 in Sahamitr Pressure Container on August 29, 2024 and sell it today you would lose (40.00) from holding Sahamitr Pressure Container or give up 4.21% 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. Sahamit Machinery Public
Performance |
| Timeline |
| Sahamitr Pressure |
| Sahamit Machinery Public |
Sahamitr Pressure and Sahamit Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sahamitr Pressure and Sahamit Machinery
The main advantage of trading using opposite Sahamitr Pressure and Sahamit Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sahamitr Pressure position performs unexpectedly, Sahamit Machinery 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 Sahamit Machinery will offset losses from the drop in Sahamit Machinery's long position.| Sahamitr Pressure vs. Haad Thip Public | Sahamitr Pressure vs. MCS Steel Public | Sahamitr Pressure vs. Somboon Advance Technology | Sahamitr Pressure vs. Regional Container Lines |
| Sahamit Machinery vs. MCS Steel Public | Sahamit Machinery vs. Asia Plus Group | Sahamit Machinery vs. Lalin Property Public | Sahamit Machinery vs. Lam Soon 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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