Correlation Between Thai Stanley and SP Syndicate
Can any of the company-specific risk be diversified away by investing in both Thai Stanley 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 Thai Stanley and SP Syndicate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thai Stanley Electric and SP Syndicate Public, you can compare the effects of market volatilities on Thai Stanley 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 Thai Stanley with a short position of SP Syndicate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thai Stanley and SP Syndicate.
Diversification Opportunities for Thai Stanley and SP Syndicate
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Thai and SNP is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Thai Stanley Electric 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 Thai Stanley 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 Thai Stanley Electric 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 Thai Stanley i.e., Thai Stanley and SP Syndicate go up and down completely randomly.
Pair Corralation between Thai Stanley and SP Syndicate
Assuming the 90 days trading horizon Thai Stanley Electric is expected to generate 1.53 times more return on investment than SP Syndicate. However, Thai Stanley is 1.53 times more volatile than SP Syndicate Public. It trades about 0.08 of its potential returns per unit of risk. SP Syndicate Public is currently generating about -0.17 per unit of risk. If you would invest 16,958 in Thai Stanley Electric on September 4, 2024 and sell it today you would earn a total of 5,042 from holding Thai Stanley Electric or generate 29.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thai Stanley Electric vs. SP Syndicate Public
Performance |
| Timeline |
| Thai Stanley Electric |
| SP Syndicate Public |
Thai Stanley and SP Syndicate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thai Stanley and SP Syndicate
The main advantage of trading using opposite Thai Stanley and SP Syndicate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thai Stanley 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.| Thai Stanley vs. Somboon Advance Technology | Thai Stanley vs. TISCO Financial Group | Thai Stanley vs. Quality Houses Public | Thai Stanley vs. Hana Microelectronics Public |
| SP Syndicate vs. Central Pattana Public | SP Syndicate vs. CP ALL Public | SP Syndicate vs. Bangkok Dusit Medical | SP Syndicate vs. Airports of Thailand |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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