Correlation Between Super Energy and RPCG Public
Can any of the company-specific risk be diversified away by investing in both Super Energy and RPCG Public 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 RPCG Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Energy and RPCG Public, you can compare the effects of market volatilities on Super Energy and RPCG Public 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 RPCG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Energy and RPCG Public.
Diversification Opportunities for Super Energy and RPCG Public
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Super and RPCG is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Super Energy and RPCG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPCG 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 RPCG Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPCG Public has no effect on the direction of Super Energy i.e., Super Energy and RPCG Public go up and down completely randomly.
Pair Corralation between Super Energy and RPCG Public
Assuming the 90 days trading horizon Super Energy is expected to generate 1.08 times more return on investment than RPCG Public. However, Super Energy is 1.08 times more volatile than RPCG Public. It trades about -0.06 of its potential returns per unit of risk. RPCG Public is currently generating about -0.21 per unit of risk. If you would invest 28.00 in Super Energy on September 3, 2024 and sell it today you would lose (1.00) from holding Super Energy or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Energy vs. RPCG Public
Performance |
| Timeline |
| Super Energy |
| RPCG Public |
Super Energy and RPCG Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Energy and RPCG Public
The main advantage of trading using opposite Super Energy and RPCG Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Energy position performs unexpectedly, RPCG Public 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 RPCG Public will offset losses from the drop in RPCG Public'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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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