Correlation Between SP Syndicate and Thai Stanley
Can any of the company-specific risk be diversified away by investing in both SP Syndicate and Thai Stanley 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 Thai Stanley 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 Thai Stanley Electric, you can compare the effects of market volatilities on SP Syndicate and Thai Stanley 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 Thai Stanley. Check out your portfolio center. Please also check ongoing floating volatility patterns of SP Syndicate and Thai Stanley.
Diversification Opportunities for SP Syndicate and Thai Stanley
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SNP and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SP Syndicate Public and Thai Stanley Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Stanley Electric 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 Thai Stanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Stanley Electric has no effect on the direction of SP Syndicate i.e., SP Syndicate and Thai Stanley go up and down completely randomly.
Pair Corralation between SP Syndicate and Thai Stanley
Assuming the 90 days trading horizon SP Syndicate Public is expected to under-perform the Thai Stanley. But the stock apears to be less risky and, when comparing its historical volatility, SP Syndicate Public is 1.53 times less risky than Thai Stanley. The stock trades about -0.17 of its potential returns per unit of risk. The Thai Stanley Electric is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 16,958 in Thai Stanley Electric on September 4, 2024 and sell it today you would earn a total of 5,042 from holding Thai Stanley Electric or generate 29.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SP Syndicate Public vs. Thai Stanley Electric
Performance |
| Timeline |
| SP Syndicate Public |
| Thai Stanley Electric |
SP Syndicate and Thai Stanley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SP Syndicate and Thai Stanley
The main advantage of trading using opposite SP Syndicate and Thai Stanley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SP Syndicate position performs unexpectedly, Thai Stanley 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 Thai Stanley will offset losses from the drop in Thai Stanley's long position.| SP Syndicate vs. Central Pattana Public | SP Syndicate vs. CP ALL Public | SP Syndicate vs. Bangkok Dusit Medical | SP Syndicate vs. Airports of Thailand |
| Thai Stanley vs. Somboon Advance Technology | Thai Stanley vs. TISCO Financial Group | Thai Stanley vs. Quality Houses Public | Thai Stanley vs. Hana Microelectronics 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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