Correlation Between VGI Public and Sahamitr Pressure
Can any of the company-specific risk be diversified away by investing in both VGI Public and Sahamitr Pressure 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 VGI Public and Sahamitr Pressure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VGI Public and Sahamitr Pressure Container, you can compare the effects of market volatilities on VGI Public and Sahamitr Pressure 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 VGI Public with a short position of Sahamitr Pressure. Check out your portfolio center. Please also check ongoing floating volatility patterns of VGI Public and Sahamitr Pressure.
Diversification Opportunities for VGI Public and Sahamitr Pressure
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between VGI and Sahamitr is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding VGI Public and Sahamitr Pressure Container in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sahamitr Pressure and VGI 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 VGI Public are associated (or correlated) with Sahamitr Pressure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sahamitr Pressure has no effect on the direction of VGI Public i.e., VGI Public and Sahamitr Pressure go up and down completely randomly.
Pair Corralation between VGI Public and Sahamitr Pressure
Assuming the 90 days trading horizon VGI Public is expected to generate 1.41 times more return on investment than Sahamitr Pressure. However, VGI Public is 1.41 times more volatile than Sahamitr Pressure Container. It trades about 0.06 of its potential returns per unit of risk. Sahamitr Pressure Container is currently generating about 0.04 per unit of risk. If you would invest 415.00 in VGI Public on August 26, 2024 and sell it today you would lose (151.00) from holding VGI Public or give up 36.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
VGI Public vs. Sahamitr Pressure Container
Performance |
| Timeline |
| VGI Public |
| Sahamitr Pressure |
VGI Public and Sahamitr Pressure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VGI Public and Sahamitr Pressure
The main advantage of trading using opposite VGI Public and Sahamitr Pressure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VGI Public position performs unexpectedly, Sahamitr Pressure 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 Sahamitr Pressure will offset losses from the drop in Sahamitr Pressure's long position.| VGI Public vs. Delta Electronics Public | VGI Public vs. Delta Electronics Public | VGI Public vs. Airports of Thailand | VGI Public vs. Airports of Thailand |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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