Correlation Between City Sports and SET Total

Can any of the company-specific risk be diversified away by investing in both City Sports and SET Total 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 City Sports and SET Total into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between City Sports and and SET Total Return, you can compare the effects of market volatilities on City Sports and SET Total 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 City Sports with a short position of SET Total. Check out your portfolio center. Please also check ongoing floating volatility patterns of City Sports and SET Total.

Diversification Opportunities for City Sports and SET Total

0.0

Correlation Coefficient

City Sports  SET Total

Pay attention - limited upside

The 3 months correlation between City and SET is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding City Sports and and SET Total Return in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SET Total Return and City Sports 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 City Sports and are associated (or correlated) with SET Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SET Total Return has no effect on the direction of City Sports i.e., City Sports and SET Total go up and down completely randomly.

Pair Corralation between City Sports and SET Total

If you would invest  6,626  in City Sports and on October 24, 2024 and sell it today you would earn a total of  2,399  from holding City Sports and or generate 36.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

City Sports and  vs.  SET Total Return

Pair Trading with City Sports and SET Total

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

The idea behind City Sports and and SET Total Return 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.