Correlation Between SRI TRANG and Sakol Energy
Can any of the company-specific risk be diversified away by investing in both SRI TRANG and Sakol Energy 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 Sakol Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SRI TRANG GLOVES and Sakol Energy Public, you can compare the effects of market volatilities on SRI TRANG and Sakol Energy 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 Sakol Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of SRI TRANG and Sakol Energy.
Diversification Opportunities for SRI TRANG and Sakol Energy
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SRI and Sakol is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding SRI TRANG GLOVES and Sakol Energy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sakol Energy Public 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 GLOVES are associated (or correlated) with Sakol Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sakol Energy Public has no effect on the direction of SRI TRANG i.e., SRI TRANG and Sakol Energy go up and down completely randomly.
Pair Corralation between SRI TRANG and Sakol Energy
Assuming the 90 days trading horizon SRI TRANG GLOVES is expected to under-perform the Sakol Energy. But the stock apears to be less risky and, when comparing its historical volatility, SRI TRANG GLOVES is 1.0 times less risky than Sakol Energy. The stock trades about -0.14 of its potential returns per unit of risk. The Sakol Energy Public is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 31.00 in Sakol Energy Public on September 22, 2024 and sell it today you would lose (2.00) from holding Sakol Energy Public or give up 6.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
SRI TRANG GLOVES vs. Sakol Energy Public
Performance |
| Timeline |
| SRI TRANG GLOVES |
| Sakol Energy Public |
SRI TRANG and Sakol Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SRI TRANG and Sakol Energy
The main advantage of trading using opposite SRI TRANG and Sakol Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SRI TRANG position performs unexpectedly, Sakol Energy 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 Sakol Energy will offset losses from the drop in Sakol Energy's long position.| SRI TRANG vs. Sri Trang Agro Industry | SRI TRANG vs. Jay Mart Public | SRI TRANG vs. Com7 PCL | SRI TRANG vs. Energy Absolute Public |
| Sakol Energy vs. Siamgas and Petrochemicals | Sakol Energy vs. Star Petroleum Refining | Sakol Energy vs. PTG Energy PCL | Sakol Energy vs. IRPC Public |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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