Correlation Between Surapon Foods and SC Asset

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

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

Diversification Opportunities for Surapon Foods and SC Asset

0.1

Correlation Coefficient

Surapon Foods  SC Asset

Average diversification

The 3 months correlation between Surapon and SC Asset is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Surapon Foods Public and SC Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SC Asset and Surapon Foods 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 Surapon Foods 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 Surapon Foods i.e., Surapon Foods and SC Asset go up and down completely randomly.

Pair Corralation between Surapon Foods and SC Asset

Assuming the 90 days trading horizon Surapon Foods Public is expected to under-perform the SC Asset. But the stock apears to be less risky and, when comparing its historical volatility, Surapon Foods Public is 1.73 times less risky than SC Asset. The stock trades about -0.07 of its potential returns per unit of risk. The SC Asset is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  288.00  in SC Asset on September 16, 2024 and sell it today you would lose (6.00) from holding SC Asset or give up 2.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Surapon Foods Public  vs.  SC Asset

Surapon Foods Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Surapon Foods Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Surapon Foods is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional 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 quite persistent fundamental drivers, SC Asset 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 Surapon Foods and SC Asset

The main advantage of trading using opposite Surapon Foods and SC Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Surapon Foods 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 Surapon Foods 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.