Correlation Between Symphony Communication and Bangkok Sheet
Can any of the company-specific risk be diversified away by investing in both Symphony Communication and Bangkok Sheet 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 Symphony Communication and Bangkok Sheet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Symphony Communication Public and Bangkok Sheet Metal, you can compare the effects of market volatilities on Symphony Communication and Bangkok Sheet 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 Symphony Communication with a short position of Bangkok Sheet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Symphony Communication and Bangkok Sheet.
Diversification Opportunities for Symphony Communication and Bangkok Sheet
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Symphony and Bangkok is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Symphony Communication Public and Bangkok Sheet Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Sheet Metal and Symphony Communication 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 Symphony Communication Public are associated (or correlated) with Bangkok Sheet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Sheet Metal has no effect on the direction of Symphony Communication i.e., Symphony Communication and Bangkok Sheet go up and down completely randomly.
Pair Corralation between Symphony Communication and Bangkok Sheet
Assuming the 90 days trading horizon Symphony Communication Public is expected to generate 1.0 times more return on investment than Bangkok Sheet. However, Symphony Communication is 1.0 times more volatile than Bangkok Sheet Metal. It trades about 0.04 of its potential returns per unit of risk. Bangkok Sheet Metal is currently generating about 0.04 per unit of risk. If you would invest 598.00 in Symphony Communication Public on September 13, 2024 and sell it today you would earn a total of 247.00 from holding Symphony Communication Public or generate 41.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Symphony Communication Public vs. Bangkok Sheet Metal
Performance |
| Timeline |
| Symphony Communication |
| Bangkok Sheet Metal |
Symphony Communication and Bangkok Sheet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Symphony Communication and Bangkok Sheet
The main advantage of trading using opposite Symphony Communication and Bangkok Sheet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Symphony Communication position performs unexpectedly, Bangkok Sheet 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 Bangkok Sheet will offset losses from the drop in Bangkok Sheet's long position.| Symphony Communication vs. Synnex Public | Symphony Communication vs. SVOA Public | Symphony Communication vs. Samart Telcoms Public | Symphony Communication vs. SVI Public |
| Bangkok Sheet vs. Chewathai Public | Bangkok Sheet vs. AIRA Factoring Public | Bangkok Sheet vs. Cho Thavee Public | Bangkok Sheet vs. G Capital 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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