Correlation Between SVI Public and Ngern Tid
Can any of the company-specific risk be diversified away by investing in both SVI Public and Ngern Tid 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 Ngern Tid into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVI Public and Ngern Tid Lor, you can compare the effects of market volatilities on SVI Public and Ngern Tid 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 Ngern Tid. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVI Public and Ngern Tid.
Diversification Opportunities for SVI Public and Ngern Tid
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SVI and Ngern is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding SVI Public and Ngern Tid Lor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ngern Tid Lor 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 Ngern Tid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ngern Tid Lor has no effect on the direction of SVI Public i.e., SVI Public and Ngern Tid go up and down completely randomly.
Pair Corralation between SVI Public and Ngern Tid
Assuming the 90 days trading horizon SVI Public is expected to generate 1.0 times more return on investment than Ngern Tid. However, SVI Public is 1.0 times more volatile than Ngern Tid Lor. It trades about 0.08 of its potential returns per unit of risk. Ngern Tid Lor is currently generating about 0.08 per unit of risk. If you would invest 775.00 in SVI Public on September 12, 2024 and sell it today you would lose (50.00) from holding SVI Public or give up 6.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SVI Public vs. Ngern Tid Lor
Performance |
| Timeline |
| SVI Public |
| Ngern Tid Lor |
SVI Public and Ngern Tid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVI Public and Ngern Tid
The main advantage of trading using opposite SVI Public and Ngern Tid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVI Public position performs unexpectedly, Ngern Tid 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 Ngern Tid will offset losses from the drop in Ngern Tid's long position.| SVI Public vs. KCE Electronics Public | SVI Public vs. Land and Houses | SVI Public vs. Delta Electronics Public | SVI Public vs. The Siam Cement |
| Ngern Tid vs. Srisawad Power 1979 | Ngern Tid vs. Muangthai Capital Public | Ngern Tid vs. Micro Leasing Public | Ngern Tid vs. Krungthai Card PCL |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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