Correlation Between SVI Public and Thoresen Thai
Can any of the company-specific risk be diversified away by investing in both SVI Public and Thoresen Thai 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 Thoresen Thai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVI Public and Thoresen Thai Agencies, you can compare the effects of market volatilities on SVI Public and Thoresen Thai 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 Thoresen Thai. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVI Public and Thoresen Thai.
Diversification Opportunities for SVI Public and Thoresen Thai
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between SVI and Thoresen is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding SVI Public and Thoresen Thai Agencies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thoresen Thai Agencies 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 Thoresen Thai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thoresen Thai Agencies has no effect on the direction of SVI Public i.e., SVI Public and Thoresen Thai go up and down completely randomly.
Pair Corralation between SVI Public and Thoresen Thai
Assuming the 90 days trading horizon SVI Public is expected to generate 1.42 times more return on investment than Thoresen Thai. However, SVI Public is 1.42 times more volatile than Thoresen Thai Agencies. It trades about -0.02 of its potential returns per unit of risk. Thoresen Thai Agencies is currently generating about -0.1 per unit of risk. If you would invest 725.00 in SVI Public on August 30, 2024 and sell it today you would lose (35.00) from holding SVI Public or give up 4.83% 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. Thoresen Thai Agencies
Performance |
| Timeline |
| SVI Public |
| Thoresen Thai Agencies |
SVI Public and Thoresen Thai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVI Public and Thoresen Thai
The main advantage of trading using opposite SVI Public and Thoresen Thai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVI Public position performs unexpectedly, Thoresen Thai 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 Thoresen Thai will offset losses from the drop in Thoresen Thai'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 |
| Thoresen Thai vs. MCS Steel Public | Thoresen Thai vs. Asia Plus Group | Thoresen Thai vs. Lalin Property Public | Thoresen Thai vs. Lam Soon 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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