Correlation Between SP Syndicate and Haad Thip
Can any of the company-specific risk be diversified away by investing in both SP Syndicate and Haad Thip 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 SP Syndicate and Haad Thip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SP Syndicate Public and Haad Thip Public, you can compare the effects of market volatilities on SP Syndicate and Haad Thip 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 SP Syndicate with a short position of Haad Thip. Check out your portfolio center. Please also check ongoing floating volatility patterns of SP Syndicate and Haad Thip.
Diversification Opportunities for SP Syndicate and Haad Thip
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SNP and Haad is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding SP Syndicate Public and Haad Thip Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haad Thip Public and SP Syndicate 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 SP Syndicate Public are associated (or correlated) with Haad Thip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haad Thip Public has no effect on the direction of SP Syndicate i.e., SP Syndicate and Haad Thip go up and down completely randomly.
Pair Corralation between SP Syndicate and Haad Thip
Assuming the 90 days trading horizon SP Syndicate Public is expected to under-perform the Haad Thip. But the stock apears to be less risky and, when comparing its historical volatility, SP Syndicate Public is 1.83 times less risky than Haad Thip. The stock trades about -0.09 of its potential returns per unit of risk. The Haad Thip Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,262 in Haad Thip Public on August 30, 2024 and sell it today you would earn a total of 348.00 from holding Haad Thip Public or generate 27.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SP Syndicate Public vs. Haad Thip Public
Performance |
| Timeline |
| SP Syndicate Public |
| Haad Thip Public |
SP Syndicate and Haad Thip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SP Syndicate and Haad Thip
The main advantage of trading using opposite SP Syndicate and Haad Thip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SP Syndicate position performs unexpectedly, Haad Thip 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 Haad Thip will offset losses from the drop in Haad Thip's long position.| SP Syndicate vs. CP ALL Public | SP Syndicate vs. Bangkok Dusit Medical | SP Syndicate vs. Central Pattana Public | SP Syndicate vs. Advanced Info Service |
| Haad Thip vs. Charoen Pokphand Foods | Haad Thip vs. Carabao Group Public | Haad Thip vs. Home Product Center | Haad Thip vs. Ichitan Group 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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