Correlation Between Supalai Public and Singha Estate
Can any of the company-specific risk be diversified away by investing in both Supalai Public and Singha Estate 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 Supalai Public and Singha Estate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supalai Public and Singha Estate Public, you can compare the effects of market volatilities on Supalai Public and Singha Estate 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 Supalai Public with a short position of Singha Estate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supalai Public and Singha Estate.
Diversification Opportunities for Supalai Public and Singha Estate
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Supalai and Singha is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Supalai Public and Singha Estate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singha Estate Public and Supalai Public 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 Supalai Public are associated (or correlated) with Singha Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singha Estate Public has no effect on the direction of Supalai Public i.e., Supalai Public and Singha Estate go up and down completely randomly.
Pair Corralation between Supalai Public and Singha Estate
Assuming the 90 days trading horizon Supalai Public is expected to generate 0.61 times more return on investment than Singha Estate. However, Supalai Public is 1.65 times less risky than Singha Estate. It trades about -0.22 of its potential returns per unit of risk. Singha Estate Public is currently generating about -0.26 per unit of risk. If you would invest 1,930 in Supalai Public on November 3, 2024 and sell it today you would lose (250.00) from holding Supalai Public or give up 12.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.56% |
| Values | Daily Returns |
Supalai Public vs. Singha Estate Public
Performance |
| Timeline |
| Supalai Public |
| Singha Estate Public |
Supalai Public and Singha Estate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supalai Public and Singha Estate
The main advantage of trading using opposite Supalai Public and Singha Estate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supalai Public position performs unexpectedly, Singha Estate 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 Singha Estate will offset losses from the drop in Singha Estate's long position.| Supalai Public vs. Land and Houses | Supalai Public vs. AP Public | Supalai Public vs. Quality Houses Public | Supalai Public vs. Central Pattana Public |
| Singha Estate vs. Land and Houses | Singha Estate vs. AP Public | Singha Estate vs. Quality Houses Public | Singha Estate vs. Central Pattana 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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