Correlation Between Ngern Tid and SGF Capital
Can any of the company-specific risk be diversified away by investing in both Ngern Tid and SGF Capital 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 Ngern Tid and SGF Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ngern Tid Lor and SGF Capital Public, you can compare the effects of market volatilities on Ngern Tid and SGF Capital 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 Ngern Tid with a short position of SGF Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ngern Tid and SGF Capital.
Diversification Opportunities for Ngern Tid and SGF Capital
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ngern and SGF is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ngern Tid Lor and SGF Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGF Capital Public and Ngern Tid 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 Ngern Tid Lor are associated (or correlated) with SGF Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGF Capital Public has no effect on the direction of Ngern Tid i.e., Ngern Tid and SGF Capital go up and down completely randomly.
Pair Corralation between Ngern Tid and SGF Capital
Assuming the 90 days trading horizon Ngern Tid Lor is expected to generate 0.93 times more return on investment than SGF Capital. However, Ngern Tid Lor is 1.08 times less risky than SGF Capital. It trades about 0.04 of its potential returns per unit of risk. SGF Capital Public is currently generating about -0.22 per unit of risk. If you would invest 1,730 in Ngern Tid Lor on August 31, 2024 and sell it today you would earn a total of 30.00 from holding Ngern Tid Lor or generate 1.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ngern Tid Lor vs. SGF Capital Public
Performance |
| Timeline |
| Ngern Tid Lor |
| SGF Capital Public |
Ngern Tid and SGF Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ngern Tid and SGF Capital
The main advantage of trading using opposite Ngern Tid and SGF Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ngern Tid position performs unexpectedly, SGF Capital 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 SGF Capital will offset losses from the drop in SGF Capital's long position.| Ngern Tid vs. East Coast Furnitech | Ngern Tid vs. Filter Vision Public | Ngern Tid vs. Cho Thavee Public | Ngern Tid vs. Akkhie Prakarn Public |
| SGF Capital vs. East Coast Furnitech | SGF Capital vs. Filter Vision Public | SGF Capital vs. Cho Thavee Public | SGF Capital vs. Akkhie Prakarn 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |