Correlation Between Sao Vang and Picomat Plastic

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Sao Vang and Picomat Plastic 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 Sao Vang and Picomat Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sao Vang Rubber and Picomat Plastic JSC, you can compare the effects of market volatilities on Sao Vang and Picomat Plastic 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 Sao Vang with a short position of Picomat Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sao Vang and Picomat Plastic.

Diversification Opportunities for Sao Vang and Picomat Plastic

-0.69
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Sao and Picomat is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Sao Vang Rubber and Picomat Plastic JSC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Picomat Plastic JSC and Sao Vang 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 Sao Vang Rubber are associated (or correlated) with Picomat Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Picomat Plastic JSC has no effect on the direction of Sao Vang i.e., Sao Vang and Picomat Plastic go up and down completely randomly.

Pair Corralation between Sao Vang and Picomat Plastic

Assuming the 90 days trading horizon Sao Vang Rubber is expected to under-perform the Picomat Plastic. In addition to that, Sao Vang is 2.16 times more volatile than Picomat Plastic JSC. It trades about -0.12 of its total potential returns per unit of risk. Picomat Plastic JSC is currently generating about 0.03 per unit of volatility. If you would invest  1,270,000  in Picomat Plastic JSC on August 29, 2024 and sell it today you would earn a total of  10,000  from holding Picomat Plastic JSC or generate 0.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy63.64%
ValuesDaily Returns

Sao Vang Rubber  vs.  Picomat Plastic JSC

 Performance 
       Timeline  
Sao Vang Rubber 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Sao Vang Rubber has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in December 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.
Picomat Plastic JSC 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Picomat Plastic JSC are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical indicators, Picomat Plastic may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Sao Vang and Picomat Plastic Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sao Vang and Picomat Plastic

The main advantage of trading using opposite Sao Vang and Picomat Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sao Vang position performs unexpectedly, Picomat Plastic 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 Picomat Plastic will offset losses from the drop in Picomat Plastic's long position.
The idea behind Sao Vang Rubber and Picomat Plastic JSC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

Other Complementary Tools

Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum