Correlation Between SGF Capital and Samart Public
Can any of the company-specific risk be diversified away by investing in both SGF Capital and Samart 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 SGF Capital and Samart Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SGF Capital Public and Samart Public, you can compare the effects of market volatilities on SGF Capital and Samart 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 SGF Capital with a short position of Samart Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of SGF Capital and Samart Public.
Diversification Opportunities for SGF Capital and Samart Public
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SGF and Samart is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding SGF Capital Public and Samart Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samart Public and SGF Capital 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 SGF Capital Public are associated (or correlated) with Samart Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samart Public has no effect on the direction of SGF Capital i.e., SGF Capital and Samart Public go up and down completely randomly.
Pair Corralation between SGF Capital and Samart Public
Assuming the 90 days trading horizon SGF Capital Public is expected to under-perform the Samart Public. In addition to that, SGF Capital is 1.64 times more volatile than Samart Public. It trades about -0.12 of its total potential returns per unit of risk. Samart Public is currently generating about 0.02 per unit of volatility. If you would invest 690.00 in Samart Public on September 15, 2024 and sell it today you would earn a total of 10.00 from holding Samart Public or generate 1.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SGF Capital Public vs. Samart Public
Performance |
Timeline |
SGF Capital Public |
Samart Public |
SGF Capital and Samart Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SGF Capital and Samart Public
The main advantage of trading using opposite SGF Capital and Samart Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SGF Capital position performs unexpectedly, Samart 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 Samart Public will offset losses from the drop in Samart Public's long position.SGF Capital vs. Srisawad Power 1979 | SGF Capital vs. Muangthai Capital Public | SGF Capital vs. Micro Leasing Public | SGF Capital vs. Krungthai Card PCL |
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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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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