Correlation Between Syntec Construction and Somboon Advance
Can any of the company-specific risk be diversified away by investing in both Syntec Construction and Somboon Advance 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 Somboon Advance 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 Somboon Advance Technology, you can compare the effects of market volatilities on Syntec Construction and Somboon Advance 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 Somboon Advance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Syntec Construction and Somboon Advance.
Diversification Opportunities for Syntec Construction and Somboon Advance
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Syntec and Somboon is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Syntec Construction Public and Somboon Advance Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Somboon Advance Tech 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 Somboon Advance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Somboon Advance Tech has no effect on the direction of Syntec Construction i.e., Syntec Construction and Somboon Advance go up and down completely randomly.
Pair Corralation between Syntec Construction and Somboon Advance
Assuming the 90 days trading horizon Syntec Construction is expected to generate 10.26 times less return on investment than Somboon Advance. But when comparing it to its historical volatility, Syntec Construction Public is 1.38 times less risky than Somboon Advance. It trades about 0.02 of its potential returns per unit of risk. Somboon Advance Technology is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,100 in Somboon Advance Technology on November 29, 2024 and sell it today you would earn a total of 130.00 from holding Somboon Advance Technology or generate 11.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Syntec Construction Public vs. Somboon Advance Technology
Performance |
| Timeline |
| Syntec Construction |
| Somboon Advance Tech |
Syntec Construction and Somboon Advance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Syntec Construction and Somboon Advance
The main advantage of trading using opposite Syntec Construction and Somboon Advance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Syntec Construction position performs unexpectedly, Somboon Advance 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 Somboon Advance will offset losses from the drop in Somboon Advance's long position.| Syntec Construction vs. Tipco Foods Public | Syntec Construction vs. STPI Public | Syntec Construction vs. Seafco Public | Syntec Construction vs. Tipco Asphalt 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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