Correlation Between Strategic Education and Polyplex (Thailand)
Can any of the company-specific risk be diversified away by investing in both Strategic Education and Polyplex (Thailand) 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 Strategic Education and Polyplex (Thailand) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strategic Education and Polyplex Public, you can compare the effects of market volatilities on Strategic Education and Polyplex (Thailand) 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 Strategic Education with a short position of Polyplex (Thailand). Check out your portfolio center. Please also check ongoing floating volatility patterns of Strategic Education and Polyplex (Thailand).
Diversification Opportunities for Strategic Education and Polyplex (Thailand)
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Strategic and Polyplex is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Strategic Education and Polyplex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polyplex (Thailand) and Strategic Education 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 Strategic Education are associated (or correlated) with Polyplex (Thailand). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polyplex (Thailand) has no effect on the direction of Strategic Education i.e., Strategic Education and Polyplex (Thailand) go up and down completely randomly.
Pair Corralation between Strategic Education and Polyplex (Thailand)
Assuming the 90 days horizon Strategic Education is expected to generate 39.57 times less return on investment than Polyplex (Thailand). But when comparing it to its historical volatility, Strategic Education is 4.42 times less risky than Polyplex (Thailand). It trades about 0.01 of its potential returns per unit of risk. Polyplex Public is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9.31 in Polyplex Public on September 1, 2024 and sell it today you would earn a total of 23.69 from holding Polyplex Public or generate 254.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.48% |
| Values | Daily Returns |
Strategic Education vs. Polyplex Public
Performance |
| Timeline |
| Strategic Education |
| Polyplex (Thailand) |
Strategic Education and Polyplex (Thailand) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Strategic Education and Polyplex (Thailand)
The main advantage of trading using opposite Strategic Education and Polyplex (Thailand) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strategic Education position performs unexpectedly, Polyplex (Thailand) 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 Polyplex (Thailand) will offset losses from the drop in Polyplex (Thailand)'s long position.| Strategic Education vs. MIRAMAR HOTEL INV | Strategic Education vs. Sunstone Hotel Investors | Strategic Education vs. SEKISUI CHEMICAL | Strategic Education vs. Sumitomo Chemical |
| Polyplex (Thailand) vs. Strategic Education | Polyplex (Thailand) vs. Xinhua Winshare Publishing | Polyplex (Thailand) vs. TAL Education Group | Polyplex (Thailand) vs. BLUESCOPE STEEL |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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