Correlation Between Super Energy and Ananda Development
Can any of the company-specific risk be diversified away by investing in both Super Energy and Ananda Development 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 Super Energy and Ananda Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Energy and Ananda Development Public, you can compare the effects of market volatilities on Super Energy and Ananda Development 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 Super Energy with a short position of Ananda Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Energy and Ananda Development.
Diversification Opportunities for Super Energy and Ananda Development
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Super and Ananda is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Super Energy and Ananda Development Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ananda Development Public and Super Energy 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 Super Energy are associated (or correlated) with Ananda Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ananda Development Public has no effect on the direction of Super Energy i.e., Super Energy and Ananda Development go up and down completely randomly.
Pair Corralation between Super Energy and Ananda Development
Assuming the 90 days trading horizon Super Energy is expected to generate 1.03 times less return on investment than Ananda Development. But when comparing it to its historical volatility, Super Energy is 1.0 times less risky than Ananda Development. It trades about 0.04 of its potential returns per unit of risk. Ananda Development Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 134.00 in Ananda Development Public on September 3, 2024 and sell it today you would lose (66.00) from holding Ananda Development Public or give up 49.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Energy vs. Ananda Development Public
Performance |
| Timeline |
| Super Energy |
| Ananda Development Public |
Super Energy and Ananda Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Energy and Ananda Development
The main advantage of trading using opposite Super Energy and Ananda Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Energy position performs unexpectedly, Ananda Development 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 Ananda Development will offset losses from the drop in Ananda Development's long position.| Super Energy vs. Bangchak Public | Super Energy vs. Gulf Energy Development | Super Energy vs. Bangkok Expressway and | Super Energy vs. BGrimm Power 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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