Correlation Between Sun Vending and Thai OPP
Can any of the company-specific risk be diversified away by investing in both Sun Vending and Thai OPP 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 Thai OPP 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 Thai OPP Public, you can compare the effects of market volatilities on Sun Vending and Thai OPP 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 Thai OPP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Vending and Thai OPP.
Diversification Opportunities for Sun Vending and Thai OPP
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sun and Thai is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sun Vending Technology and Thai OPP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai OPP Public 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 Thai OPP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai OPP Public has no effect on the direction of Sun Vending i.e., Sun Vending and Thai OPP go up and down completely randomly.
Pair Corralation between Sun Vending and Thai OPP
Assuming the 90 days trading horizon Sun Vending Technology is expected to under-perform the Thai OPP. In addition to that, Sun Vending is 4.71 times more volatile than Thai OPP Public. It trades about -0.36 of its total potential returns per unit of risk. Thai OPP Public is currently generating about -0.22 per unit of volatility. If you would invest 17,200 in Thai OPP Public on August 28, 2024 and sell it today you would lose (300.00) from holding Thai OPP Public or give up 1.74% 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. Thai OPP Public
Performance |
| Timeline |
| Sun Vending Technology |
| Thai OPP Public |
Sun Vending and Thai OPP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Vending and Thai OPP
The main advantage of trading using opposite Sun Vending and Thai OPP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Vending position performs unexpectedly, Thai OPP 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 Thai OPP will offset losses from the drop in Thai OPP'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 |
| Thai OPP vs. Asia Sermkij Leasing | Thai OPP vs. WHA Utilities and | Thai OPP vs. Halcyon Technology Public | Thai OPP vs. Turnkey Communication Services |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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