Correlation Between Susco Public and Synnex Public
Can any of the company-specific risk be diversified away by investing in both Susco Public and Synnex 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 Susco Public and Synnex Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Susco Public and Synnex Public, you can compare the effects of market volatilities on Susco Public and Synnex 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 Susco Public with a short position of Synnex Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Susco Public and Synnex Public.
Diversification Opportunities for Susco Public and Synnex Public
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Susco and Synnex is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Susco Public and Synnex Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Synnex Public and Susco Public 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 Susco Public are associated (or correlated) with Synnex Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Synnex Public has no effect on the direction of Susco Public i.e., Susco Public and Synnex Public go up and down completely randomly.
Pair Corralation between Susco Public and Synnex Public
Assuming the 90 days trading horizon Susco Public is expected to generate 0.55 times more return on investment than Synnex Public. However, Susco Public is 1.81 times less risky than Synnex Public. It trades about -0.08 of its potential returns per unit of risk. Synnex Public is currently generating about -0.24 per unit of risk. If you would invest 280.00 in Susco Public on December 1, 2024 and sell it today you would lose (10.00) from holding Susco Public or give up 3.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Susco Public vs. Synnex Public
Performance |
| Timeline |
| Susco Public |
| Synnex Public |
Susco Public and Synnex Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Susco Public and Synnex Public
The main advantage of trading using opposite Susco Public and Synnex Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Susco Public position performs unexpectedly, Synnex 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 Synnex Public will offset losses from the drop in Synnex Public's long position.| Susco Public vs. Lanna Resources Public | Susco Public vs. Thai Oil Public | Susco Public vs. Star Petroleum Refining | Susco Public vs. Ratch Group Public |
| Synnex Public vs. Com7 PCL | Synnex Public vs. Jay Mart Public | Synnex Public vs. SiS Distribution Public | Synnex Public vs. KCE Electronics 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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