Correlation Between UOB Kay and Singha Estate
Can any of the company-specific risk be diversified away by investing in both UOB Kay and Singha Estate 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 UOB Kay and Singha Estate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UOB Kay Hian and Singha Estate Public, you can compare the effects of market volatilities on UOB Kay and Singha Estate 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 UOB Kay with a short position of Singha Estate. Check out your portfolio center. Please also check ongoing floating volatility patterns of UOB Kay and Singha Estate.
Diversification Opportunities for UOB Kay and Singha Estate
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UOB and Singha is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding UOB Kay Hian and Singha Estate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singha Estate Public and UOB Kay 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 UOB Kay Hian are associated (or correlated) with Singha Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singha Estate Public has no effect on the direction of UOB Kay i.e., UOB Kay and Singha Estate go up and down completely randomly.
Pair Corralation between UOB Kay and Singha Estate
Assuming the 90 days trading horizon UOB Kay is expected to generate 1396.8 times less return on investment than Singha Estate. But when comparing it to its historical volatility, UOB Kay Hian is 56.56 times less risky than Singha Estate. It trades about 0.0 of its potential returns per unit of risk. Singha Estate Public is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 131.00 in Singha Estate Public on September 26, 2024 and sell it today you would lose (40.00) from holding Singha Estate Public or give up 30.53% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
UOB Kay Hian vs. Singha Estate Public
Performance |
Timeline |
UOB Kay Hian |
Singha Estate Public |
UOB Kay and Singha Estate Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UOB Kay and Singha Estate
The main advantage of trading using opposite UOB Kay and Singha Estate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UOB Kay position performs unexpectedly, Singha Estate 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 Singha Estate will offset losses from the drop in Singha Estate's long position.UOB Kay vs. Trinity Watthana Public | UOB Kay vs. KGI Securities Public | UOB Kay vs. Asia Plus Group | UOB Kay vs. Thitikorn Public |
Singha Estate vs. Frasers Property Public | Singha Estate vs. Areeya Property Public | Singha Estate vs. Asset Five Group | Singha Estate vs. PINTHONG INDUSTRIAL PARK |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |