Correlation Between SVOA Public and Cal Comp
Can any of the company-specific risk be diversified away by investing in both SVOA Public and Cal Comp 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 SVOA Public and Cal Comp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVOA Public and Cal Comp Electronics Public, you can compare the effects of market volatilities on SVOA Public and Cal Comp 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 SVOA Public with a short position of Cal Comp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVOA Public and Cal Comp.
Diversification Opportunities for SVOA Public and Cal Comp
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SVOA and Cal is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding SVOA Public and Cal Comp Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cal Comp Electronics and SVOA 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 SVOA Public are associated (or correlated) with Cal Comp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cal Comp Electronics has no effect on the direction of SVOA Public i.e., SVOA Public and Cal Comp go up and down completely randomly.
Pair Corralation between SVOA Public and Cal Comp
Assuming the 90 days trading horizon SVOA Public is expected to generate 13.62 times more return on investment than Cal Comp. However, SVOA Public is 13.62 times more volatile than Cal Comp Electronics Public. It trades about 0.06 of its potential returns per unit of risk. Cal Comp Electronics Public is currently generating about 0.15 per unit of risk. If you would invest 188.00 in SVOA Public on September 4, 2024 and sell it today you would lose (65.00) from holding SVOA Public or give up 34.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
SVOA Public vs. Cal Comp Electronics Public
Performance |
| Timeline |
| SVOA Public |
| Cal Comp Electronics |
SVOA Public and Cal Comp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVOA Public and Cal Comp
The main advantage of trading using opposite SVOA Public and Cal Comp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVOA Public position performs unexpectedly, Cal Comp 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 Cal Comp will offset losses from the drop in Cal Comp's long position.| SVOA Public vs. KCE Electronics Public | SVOA Public vs. Land and Houses | SVOA Public vs. The Siam Cement | SVOA Public vs. Bangkok Bank Public |
| Cal Comp vs. KCE Electronics Public | Cal Comp vs. Land and Houses | Cal Comp vs. The Siam Cement | Cal Comp vs. Bangkok Bank 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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