Correlation Between SPCG Public and Haad Thip
Can any of the company-specific risk be diversified away by investing in both SPCG Public 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 SPCG Public and Haad Thip into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPCG Public and Haad Thip Public, you can compare the effects of market volatilities on SPCG Public 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 SPCG Public with a short position of Haad Thip. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPCG Public and Haad Thip.
Diversification Opportunities for SPCG Public and Haad Thip
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SPCG and Haad is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding SPCG 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 SPCG 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 SPCG 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 SPCG Public i.e., SPCG Public and Haad Thip go up and down completely randomly.
Pair Corralation between SPCG Public and Haad Thip
Assuming the 90 days trading horizon SPCG Public is expected to under-perform the Haad Thip. In addition to that, SPCG Public is 1.24 times more volatile than Haad Thip Public. It trades about -0.02 of its total potential returns per unit of risk. Haad Thip Public is currently generating about 0.03 per unit of volatility. If you would invest 1,561 in Haad Thip Public on September 1, 2024 and sell it today you would earn a total of 59.00 from holding Haad Thip Public or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
SPCG Public vs. Haad Thip Public
Performance |
| Timeline |
| SPCG Public |
| Haad Thip Public |
SPCG Public and Haad Thip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPCG Public and Haad Thip
The main advantage of trading using opposite SPCG Public and Haad Thip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPCG Public 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.| SPCG Public vs. BCPG Public | SPCG Public vs. TPI Polene Power | SPCG Public vs. BTS Group Holdings | SPCG Public vs. Energy Absolute Public |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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