Correlation Between SVI Public and Thaire Life
Can any of the company-specific risk be diversified away by investing in both SVI Public and Thaire Life 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 SVI Public and Thaire Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVI Public and Thaire Life Assurance, you can compare the effects of market volatilities on SVI Public and Thaire Life 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 SVI Public with a short position of Thaire Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVI Public and Thaire Life.
Diversification Opportunities for SVI Public and Thaire Life
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SVI and Thaire is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding SVI Public and Thaire Life Assurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaire Life Assurance and SVI 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 SVI Public are associated (or correlated) with Thaire Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaire Life Assurance has no effect on the direction of SVI Public i.e., SVI Public and Thaire Life go up and down completely randomly.
Pair Corralation between SVI Public and Thaire Life
Assuming the 90 days trading horizon SVI Public is expected to generate 1.0 times more return on investment than Thaire Life. However, SVI Public is 1.0 times less risky than Thaire Life. It trades about 0.05 of its potential returns per unit of risk. Thaire Life Assurance is currently generating about 0.05 per unit of risk. If you would invest 789.00 in SVI Public on August 29, 2024 and sell it today you would lose (119.00) from holding SVI Public or give up 15.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SVI Public vs. Thaire Life Assurance
Performance |
| Timeline |
| SVI Public |
| Thaire Life Assurance |
SVI Public and Thaire Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVI Public and Thaire Life
The main advantage of trading using opposite SVI Public and Thaire Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVI Public position performs unexpectedly, Thaire Life 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 Thaire Life will offset losses from the drop in Thaire Life's long position.| SVI Public vs. KCE Electronics Public | SVI Public vs. Hana Microelectronics Public | SVI Public vs. Precious Shipping Public | SVI Public vs. Siri Prime Office |
| Thaire Life vs. Karmarts Public | Thaire Life vs. Kang Yong Electric | Thaire Life vs. Kiatnakin Phatra Bank | Thaire Life vs. SCG PACKAGING PCL NVDR |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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