Correlation Between RPCG Public and Sikarin Public

Can any of the company-specific risk be diversified away by investing in both RPCG Public and Sikarin Public 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 RPCG Public and Sikarin Public into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between RPCG Public and Sikarin Public, you can compare the effects of market volatilities on RPCG Public and Sikarin Public 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 RPCG Public with a short position of Sikarin Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of RPCG Public and Sikarin Public.

Diversification Opportunities for RPCG Public and Sikarin Public

0.08

Correlation Coefficient

RPCG Public  Sikarin Public

Significant diversification

The 3 months correlation between RPCG and Sikarin is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding RPCG Public and Sikarin Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sikarin Public and RPCG 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 RPCG Public are associated (or correlated) with Sikarin Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sikarin Public has no effect on the direction of RPCG Public i.e., RPCG Public and Sikarin Public go up and down completely randomly.

Pair Corralation between RPCG Public and Sikarin Public

Assuming the 90 days trading horizon RPCG Public is expected to under-perform the Sikarin Public. In addition to that, RPCG Public is 3.26 times more volatile than Sikarin Public. It trades about -0.13 of its total potential returns per unit of risk. Sikarin Public is currently generating about 0.03 per unit of volatility. If you would invest  940.00  in Sikarin Public on September 16, 2024 and sell it today you would earn a total of  10.00  from holding Sikarin Public or generate 1.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

RPCG Public  vs.  Sikarin Public

RPCG Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days RPCG Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Sikarin Public

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Sikarin Public are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Sikarin Public is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with RPCG Public and Sikarin Public

The main advantage of trading using opposite RPCG Public and Sikarin Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RPCG Public position performs unexpectedly, Sikarin Public 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 Sikarin Public will offset losses from the drop in Sikarin Public's long position.

The idea behind RPCG Public and Sikarin Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.