Correlation Between Synnex Public and SCG PACKAGING
Can any of the company-specific risk be diversified away by investing in both Synnex Public 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 Synnex Public and SCG PACKAGING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Synnex Public and SCG PACKAGING PCL NVDR, you can compare the effects of market volatilities on Synnex Public 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 Synnex Public with a short position of SCG PACKAGING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Synnex Public and SCG PACKAGING.
Diversification Opportunities for Synnex Public and SCG PACKAGING
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Synnex and SCG is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Synnex Public and SCG PACKAGING PCL NVDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCG PACKAGING PCL and Synnex Public 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 Synnex 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 PCL has no effect on the direction of Synnex Public i.e., Synnex Public and SCG PACKAGING go up and down completely randomly.
Pair Corralation between Synnex Public and SCG PACKAGING
Assuming the 90 days trading horizon Synnex Public is expected to generate 0.25 times more return on investment than SCG PACKAGING. However, Synnex Public is 4.07 times less risky than SCG PACKAGING. It trades about 0.04 of its potential returns per unit of risk. SCG PACKAGING PCL NVDR is currently generating about -0.26 per unit of risk. If you would invest 1,550 in Synnex Public on August 30, 2024 and sell it today you would earn a total of 20.00 from holding Synnex Public or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Synnex Public vs. SCG PACKAGING PCL NVDR
Performance |
| Timeline |
| Synnex Public |
| SCG PACKAGING PCL |
Synnex Public and SCG PACKAGING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Synnex Public and SCG PACKAGING
The main advantage of trading using opposite Synnex Public and SCG PACKAGING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Synnex Public 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.| Synnex Public vs. Com7 PCL | Synnex Public vs. Jay Mart Public | Synnex Public vs. SiS Distribution Public | Synnex Public vs. KCE Electronics Public |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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