Correlation Between Sao Vang and Picomat Plastic
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 Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 63.64% |
Values | Daily Returns |
Sao Vang Rubber vs. Picomat Plastic JSC
Performance |
Timeline |
Sao Vang Rubber |
Picomat Plastic JSC |
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.Sao Vang vs. FIT INVEST JSC | Sao Vang vs. Damsan JSC | Sao Vang vs. An Phat Plastic | Sao Vang vs. APG Securities Joint |
Picomat Plastic vs. FIT INVEST JSC | Picomat Plastic vs. Damsan JSC | Picomat Plastic vs. An Phat Plastic | Picomat Plastic vs. APG Securities Joint |
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.
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