Correlation Between Sri Trang and S Pack
Can any of the company-specific risk be diversified away by investing in both Sri Trang and S Pack 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 Sri Trang and S Pack into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sri Trang Agro Industry and S Pack Print, you can compare the effects of market volatilities on Sri Trang and S Pack 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 Sri Trang with a short position of S Pack. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sri Trang and S Pack.
Diversification Opportunities for Sri Trang and S Pack
Average diversification
The 3 months correlation between Sri and SPACK is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Sri Trang Agro Industry and S Pack Print in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on S Pack Print and Sri Trang 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 Sri Trang Agro Industry are associated (or correlated) with S Pack. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of S Pack Print has no effect on the direction of Sri Trang i.e., Sri Trang and S Pack go up and down completely randomly.
Pair Corralation between Sri Trang and S Pack
Assuming the 90 days trading horizon Sri Trang is expected to generate 107.15 times less return on investment than S Pack. But when comparing it to its historical volatility, Sri Trang Agro Industry is 24.01 times less risky than S Pack. It trades about 0.01 of its potential returns per unit of risk. S Pack Print is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 197.00 in S Pack Print on September 1, 2024 and sell it today you would lose (17.00) from holding S Pack Print or give up 8.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sri Trang Agro Industry vs. S Pack Print
Performance |
| Timeline |
| Sri Trang Agro |
| S Pack Print |
Sri Trang and S Pack Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sri Trang and S Pack
The main advantage of trading using opposite Sri Trang and S Pack positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sri Trang position performs unexpectedly, S Pack 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 S Pack will offset losses from the drop in S Pack's long position.| Sri Trang vs. Sri Trang Gloves | Sri Trang vs. Charoen Pokphand Foods | Sri Trang vs. Thai Union Group | Sri Trang vs. The Siam Cement |
| S Pack vs. AAPICO Hitech Public | S Pack vs. AP Public | S Pack vs. Aikchol Hospital Public | S Pack vs. Bank of Ayudhya |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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