Correlation Between Syntec Construction and CHAOSUA FOODS
Can any of the company-specific risk be diversified away by investing in both Syntec Construction and CHAOSUA FOODS 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 Syntec Construction and CHAOSUA FOODS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Syntec Construction Public and CHAOSUA FOODS INDUSTRY, you can compare the effects of market volatilities on Syntec Construction and CHAOSUA FOODS 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 Syntec Construction with a short position of CHAOSUA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Syntec Construction and CHAOSUA FOODS.
Diversification Opportunities for Syntec Construction and CHAOSUA FOODS
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Syntec and CHAOSUA is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Syntec Construction Public and CHAOSUA FOODS INDUSTRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHAOSUA FOODS INDUSTRY and Syntec Construction 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 Syntec Construction Public are associated (or correlated) with CHAOSUA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHAOSUA FOODS INDUSTRY has no effect on the direction of Syntec Construction i.e., Syntec Construction and CHAOSUA FOODS go up and down completely randomly.
Pair Corralation between Syntec Construction and CHAOSUA FOODS
Assuming the 90 days trading horizon Syntec Construction Public is expected to generate 0.46 times more return on investment than CHAOSUA FOODS. However, Syntec Construction Public is 2.16 times less risky than CHAOSUA FOODS. It trades about 0.01 of its potential returns per unit of risk. CHAOSUA FOODS INDUSTRY is currently generating about -0.17 per unit of risk. If you would invest 157.00 in Syntec Construction Public on August 24, 2024 and sell it today you would earn a total of 3.00 from holding Syntec Construction Public or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 19.54% |
| Values | Daily Returns |
Syntec Construction Public vs. CHAOSUA FOODS INDUSTRY
Performance |
| Timeline |
| Syntec Construction |
| CHAOSUA FOODS INDUSTRY |
Syntec Construction and CHAOSUA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Syntec Construction and CHAOSUA FOODS
The main advantage of trading using opposite Syntec Construction and CHAOSUA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Syntec Construction position performs unexpectedly, CHAOSUA FOODS 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 CHAOSUA FOODS will offset losses from the drop in CHAOSUA FOODS's long position.| Syntec Construction vs. Tata Steel Public | Syntec Construction vs. Thaifoods Group Public | Syntec Construction vs. TMT Steel Public | Syntec Construction vs. The Erawan Group |
| CHAOSUA FOODS vs. Delta Electronics Public | CHAOSUA FOODS vs. Delta Electronics Public | CHAOSUA FOODS vs. Airports of Thailand | CHAOSUA FOODS vs. Airports of Thailand |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |