Correlation Between Sri Trang and SRI TRANG
Can any of the company-specific risk be diversified away by investing in both Sri Trang and SRI TRANG 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 SRI TRANG 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 SRI TRANG GLOVES, you can compare the effects of market volatilities on Sri Trang and SRI TRANG 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 SRI TRANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sri Trang and SRI TRANG.
Diversification Opportunities for Sri Trang and SRI TRANG
Excellent diversification
The 3 months correlation between Sri and SRI is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Sri Trang Agro Industry and SRI TRANG GLOVES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SRI TRANG GLOVES 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 SRI TRANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SRI TRANG GLOVES has no effect on the direction of Sri Trang i.e., Sri Trang and SRI TRANG go up and down completely randomly.
Pair Corralation between Sri Trang and SRI TRANG
Assuming the 90 days trading horizon Sri Trang Agro Industry is expected to under-perform the SRI TRANG. But the stock apears to be less risky and, when comparing its historical volatility, Sri Trang Agro Industry is 2.27 times less risky than SRI TRANG. The stock trades about -0.14 of its potential returns per unit of risk. The SRI TRANG GLOVES is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 746.00 in SRI TRANG GLOVES on September 22, 2024 and sell it today you would earn a total of 179.00 from holding SRI TRANG GLOVES or generate 23.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Sri Trang Agro Industry vs. SRI TRANG GLOVES
Performance |
| Timeline |
| Sri Trang Agro |
| SRI TRANG GLOVES |
Sri Trang and SRI TRANG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sri Trang and SRI TRANG
The main advantage of trading using opposite Sri Trang and SRI TRANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sri Trang position performs unexpectedly, SRI TRANG 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 SRI TRANG will offset losses from the drop in SRI TRANG's long position.| Sri Trang vs. CP ALL Public | Sri Trang vs. Bangkok Dusit Medical | Sri Trang vs. Airports of Thailand | Sri Trang vs. Kasikornbank Public |
| SRI TRANG vs. SE Education Public | SRI TRANG vs. JKN Global Media | SRI TRANG vs. Hana Microelectronics Public | SRI TRANG vs. Siam Steel Service |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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