Correlation Between Super Energy and Siri Prime
Can any of the company-specific risk be diversified away by investing in both Super Energy and Siri Prime 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 Siri Prime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Super Energy and Siri Prime Office, you can compare the effects of market volatilities on Super Energy and Siri Prime 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 Siri Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Super Energy and Siri Prime.
Diversification Opportunities for Super Energy and Siri Prime
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Super and Siri is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Super Energy and Siri Prime Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siri Prime Office 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 Siri Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siri Prime Office has no effect on the direction of Super Energy i.e., Super Energy and Siri Prime go up and down completely randomly.
Pair Corralation between Super Energy and Siri Prime
Assuming the 90 days trading horizon Super Energy is expected to generate 24.4 times more return on investment than Siri Prime. However, Super Energy is 24.4 times more volatile than Siri Prime Office. It trades about 0.04 of its potential returns per unit of risk. Siri Prime Office is currently generating about 0.03 per unit of risk. If you would invest 66.00 in Super Energy on September 3, 2024 and sell it today you would lose (39.00) from holding Super Energy or give up 59.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Super Energy vs. Siri Prime Office
Performance |
| Timeline |
| Super Energy |
| Siri Prime Office |
Super Energy and Siri Prime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Super Energy and Siri Prime
The main advantage of trading using opposite Super Energy and Siri Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Super Energy position performs unexpectedly, Siri Prime 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 Siri Prime will offset losses from the drop in Siri Prime'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 |
| Siri Prime vs. Land and Houses | Siri Prime vs. Quality Houses Public | Siri Prime vs. AP Public | Siri Prime vs. SCB X 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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