Correlation Between Sermsuk Public and SP Syndicate
Can any of the company-specific risk be diversified away by investing in both Sermsuk Public and SP Syndicate 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 Sermsuk Public and SP Syndicate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sermsuk Public and SP Syndicate Public, you can compare the effects of market volatilities on Sermsuk Public and SP Syndicate 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 Sermsuk Public with a short position of SP Syndicate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sermsuk Public and SP Syndicate.
Diversification Opportunities for Sermsuk Public and SP Syndicate
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sermsuk and SNP is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sermsuk Public and SP Syndicate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Syndicate Public and Sermsuk 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 Sermsuk Public are associated (or correlated) with SP Syndicate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Syndicate Public has no effect on the direction of Sermsuk Public i.e., Sermsuk Public and SP Syndicate go up and down completely randomly.
Pair Corralation between Sermsuk Public and SP Syndicate
Assuming the 90 days trading horizon Sermsuk Public is expected to generate 57.09 times more return on investment than SP Syndicate. However, Sermsuk Public is 57.09 times more volatile than SP Syndicate Public. It trades about 0.05 of its potential returns per unit of risk. SP Syndicate Public is currently generating about -0.12 per unit of risk. If you would invest 3,397 in Sermsuk Public on September 2, 2024 and sell it today you would earn a total of 2,903 from holding Sermsuk Public or generate 85.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sermsuk Public vs. SP Syndicate Public
Performance |
| Timeline |
| Sermsuk Public |
| SP Syndicate Public |
Sermsuk Public and SP Syndicate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sermsuk Public and SP Syndicate
The main advantage of trading using opposite Sermsuk Public and SP Syndicate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sermsuk Public position performs unexpectedly, SP Syndicate 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 SP Syndicate will offset losses from the drop in SP Syndicate's long position.| Sermsuk Public vs. MK Restaurant Group | Sermsuk Public vs. TRC Construction Public | Sermsuk Public vs. Bangkok Expressway and | Sermsuk Public vs. Lohakit Metal Public |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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