Correlation Between Sammakorn Public and SC Asset

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

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

Diversification Opportunities for Sammakorn Public and SC Asset

0.75

Correlation Coefficient

Sammakorn Public  SC Asset

Poor diversification

The 3 months correlation between Sammakorn and SC Asset is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Sammakorn Public and SC Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SC Asset and Sammakorn 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 Sammakorn Public are associated (or correlated) with SC Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SC Asset has no effect on the direction of Sammakorn Public i.e., Sammakorn Public and SC Asset go up and down completely randomly.

Pair Corralation between Sammakorn Public and SC Asset

Assuming the 90 days trading horizon Sammakorn Public is expected to generate 0.78 times more return on investment than SC Asset. However, Sammakorn Public is 1.28 times less risky than SC Asset. It trades about -0.14 of its potential returns per unit of risk. SC Asset is currently generating about -0.18 per unit of risk. If you would invest  93.00  in Sammakorn Public on September 25, 2024 and sell it today you would lose (3.00) from holding Sammakorn Public or give up 3.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.0%
Values	Daily Returns

Sammakorn Public  vs.  SC Asset

Sammakorn Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sammakorn 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 drivers remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

SC Asset

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SC Asset has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's fundamental drivers remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Sammakorn Public and SC Asset

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

The idea behind Sammakorn Public and SC Asset 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 Transaction History module to view history of all your transactions and understand their impact on performance.