Correlation Between Sun Vending and Somboon Advance
Can any of the company-specific risk be diversified away by investing in both Sun Vending and Somboon Advance 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 Somboon Advance 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 Somboon Advance Technology, you can compare the effects of market volatilities on Sun Vending and Somboon Advance 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 Somboon Advance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Vending and Somboon Advance.
Diversification Opportunities for Sun Vending and Somboon Advance
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sun and Somboon is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sun Vending Technology and Somboon Advance Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Somboon Advance Tech 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 Somboon Advance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Somboon Advance Tech has no effect on the direction of Sun Vending i.e., Sun Vending and Somboon Advance go up and down completely randomly.
Pair Corralation between Sun Vending and Somboon Advance
Assuming the 90 days trading horizon Sun Vending Technology is expected to under-perform the Somboon Advance. In addition to that, Sun Vending is 1.64 times more volatile than Somboon Advance Technology. It trades about -0.07 of its total potential returns per unit of risk. Somboon Advance Technology is currently generating about -0.05 per unit of volatility. If you would invest 1,624 in Somboon Advance Technology on January 12, 2025 and sell it today you would lose (584.00) from holding Somboon Advance Technology or give up 35.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sun Vending Technology vs. Somboon Advance Technology
Performance |
| Timeline |
| Sun Vending Technology |
| Somboon Advance Tech |
Sun Vending and Somboon Advance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Vending and Somboon Advance
The main advantage of trading using opposite Sun Vending and Somboon Advance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Vending position performs unexpectedly, Somboon Advance 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 Somboon Advance will offset losses from the drop in Somboon Advance'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 |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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