Correlation Between Intouch Holdings and SCG PACKAGING
Can any of the company-specific risk be diversified away by investing in both Intouch Holdings and SCG PACKAGING 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 Intouch Holdings and SCG PACKAGING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intouch Holdings Public and SCG PACKAGING FGN , you can compare the effects of market volatilities on Intouch Holdings and SCG PACKAGING 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 Intouch Holdings with a short position of SCG PACKAGING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intouch Holdings and SCG PACKAGING.
Diversification Opportunities for Intouch Holdings and SCG PACKAGING
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intouch and SCG is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Intouch Holdings Public and SCG PACKAGING FGN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCG PACKAGING FGN and Intouch Holdings 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 Intouch Holdings Public are associated (or correlated) with SCG PACKAGING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCG PACKAGING FGN has no effect on the direction of Intouch Holdings i.e., Intouch Holdings and SCG PACKAGING go up and down completely randomly.
Pair Corralation between Intouch Holdings and SCG PACKAGING
Assuming the 90 days trading horizon Intouch Holdings is expected to generate 3.73 times less return on investment than SCG PACKAGING. But when comparing it to its historical volatility, Intouch Holdings Public is 3.43 times less risky than SCG PACKAGING. It trades about 0.04 of its potential returns per unit of risk. SCG PACKAGING FGN is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 31.00 in SCG PACKAGING FGN on September 3, 2024 and sell it today you would earn a total of 27.00 from holding SCG PACKAGING FGN or generate 87.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intouch Holdings Public vs. SCG PACKAGING FGN
Performance |
| Timeline |
| Intouch Holdings Public |
| SCG PACKAGING FGN |
Intouch Holdings and SCG PACKAGING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intouch Holdings and SCG PACKAGING
The main advantage of trading using opposite Intouch Holdings and SCG PACKAGING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intouch Holdings position performs unexpectedly, SCG PACKAGING 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 SCG PACKAGING will offset losses from the drop in SCG PACKAGING's long position.| Intouch Holdings vs. T Mobile | Intouch Holdings vs. China Mobile Limited | Intouch Holdings vs. ATT Inc | Intouch Holdings vs. Nippon Telegraph and |
| SCG PACKAGING vs. Indorama Ventures PCL | SCG PACKAGING vs. PTT GLBL CHEM NVDR | SCG PACKAGING vs. Intouch Holdings Public | SCG PACKAGING 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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