Correlation Between Sun Vending and Asia Sermkij
Can any of the company-specific risk be diversified away by investing in both Sun Vending and Asia Sermkij 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 Sun Vending and Asia Sermkij into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Vending Technology and Asia Sermkij Leasing, you can compare the effects of market volatilities on Sun Vending and Asia Sermkij 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 Sun Vending with a short position of Asia Sermkij. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Vending and Asia Sermkij.
Diversification Opportunities for Sun Vending and Asia Sermkij
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sun and Asia is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Sun Vending Technology and Asia Sermkij Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Sermkij Leasing and Sun Vending 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 Sun Vending Technology are associated (or correlated) with Asia Sermkij. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Sermkij Leasing has no effect on the direction of Sun Vending i.e., Sun Vending and Asia Sermkij go up and down completely randomly.
Pair Corralation between Sun Vending and Asia Sermkij
Assuming the 90 days trading horizon Sun Vending Technology is expected to generate 1.15 times more return on investment than Asia Sermkij. However, Sun Vending is 1.15 times more volatile than Asia Sermkij Leasing. It trades about -0.04 of its potential returns per unit of risk. Asia Sermkij Leasing is currently generating about -0.09 per unit of risk. If you would invest 249.00 in Sun Vending Technology on August 28, 2024 and sell it today you would lose (94.00) from holding Sun Vending Technology or give up 37.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Vending Technology vs. Asia Sermkij Leasing
Performance |
| Timeline |
| Sun Vending Technology |
| Asia Sermkij Leasing |
Sun Vending and Asia Sermkij Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Vending and Asia Sermkij
The main advantage of trading using opposite Sun Vending and Asia Sermkij positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Vending position performs unexpectedly, Asia Sermkij 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 Asia Sermkij will offset losses from the drop in Asia Sermkij's long position.| Sun Vending vs. Hana Microelectronics Public | Sun Vending vs. Global Power Synergy | Sun Vending vs. Siam Global House | Sun Vending vs. Gulf Energy Development |
| Asia Sermkij vs. AP Public | Asia Sermkij vs. Kiatnakin Phatra Bank | Asia Sermkij vs. TISCO Financial Group | Asia Sermkij vs. Carabao Group 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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