Correlation Between SANOK RUBBER and Strix Group
Can any of the company-specific risk be diversified away by investing in both SANOK RUBBER and Strix Group 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 SANOK RUBBER and Strix Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SANOK RUBBER ZY and Strix Group Plc, you can compare the effects of market volatilities on SANOK RUBBER and Strix Group 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 SANOK RUBBER with a short position of Strix Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SANOK RUBBER and Strix Group.
Diversification Opportunities for SANOK RUBBER and Strix Group
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SANOK and Strix is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding SANOK RUBBER ZY and Strix Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strix Group Plc and SANOK RUBBER 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 SANOK RUBBER ZY are associated (or correlated) with Strix Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strix Group Plc has no effect on the direction of SANOK RUBBER i.e., SANOK RUBBER and Strix Group go up and down completely randomly.
Pair Corralation between SANOK RUBBER and Strix Group
Assuming the 90 days horizon SANOK RUBBER ZY is expected to generate 0.85 times more return on investment than Strix Group. However, SANOK RUBBER ZY is 1.17 times less risky than Strix Group. It trades about 0.17 of its potential returns per unit of risk. Strix Group Plc is currently generating about -0.02 per unit of risk. If you would invest 439.00 in SANOK RUBBER ZY on December 4, 2024 and sell it today you would earn a total of 95.00 from holding SANOK RUBBER ZY or generate 21.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SANOK RUBBER ZY vs. Strix Group Plc
Performance |
Timeline |
SANOK RUBBER ZY |
Strix Group Plc |
SANOK RUBBER and Strix Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SANOK RUBBER and Strix Group
The main advantage of trading using opposite SANOK RUBBER and Strix Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SANOK RUBBER position performs unexpectedly, Strix Group 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 Strix Group will offset losses from the drop in Strix Group's long position.SANOK RUBBER vs. Evolution Mining Limited | SANOK RUBBER vs. TRADEGATE | SANOK RUBBER vs. GREENX METALS LTD | SANOK RUBBER vs. Western Copper and |
Strix Group vs. SINGAPORE AIRLINES | Strix Group vs. UET United Electronic | Strix Group vs. Schweizer Electronic AG | Strix Group vs. United Airlines Holdings |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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