Correlation Between Namwiwat Medical and SAF Special
Can any of the company-specific risk be diversified away by investing in both Namwiwat Medical and SAF Special 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 Namwiwat Medical and SAF Special into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Namwiwat Medical and SAF Special Steel, you can compare the effects of market volatilities on Namwiwat Medical and SAF Special 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 Namwiwat Medical with a short position of SAF Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namwiwat Medical and SAF Special.
Diversification Opportunities for Namwiwat Medical and SAF Special
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Namwiwat and SAF is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Namwiwat Medical and SAF Special Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAF Special Steel and Namwiwat Medical 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 Namwiwat Medical are associated (or correlated) with SAF Special. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAF Special Steel has no effect on the direction of Namwiwat Medical i.e., Namwiwat Medical and SAF Special go up and down completely randomly.
Pair Corralation between Namwiwat Medical and SAF Special
Assuming the 90 days trading horizon Namwiwat Medical is expected to under-perform the SAF Special. But the stock apears to be less risky and, when comparing its historical volatility, Namwiwat Medical is 1.7 times less risky than SAF Special. The stock trades about -0.04 of its potential returns per unit of risk. The SAF Special Steel is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 49.00 in SAF Special Steel on December 29, 2024 and sell it today you would earn a total of 2.00 from holding SAF Special Steel or generate 4.08% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
Namwiwat Medical vs. SAF Special Steel
Performance |
Timeline |
Namwiwat Medical |
SAF Special Steel |
Namwiwat Medical and SAF Special Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Namwiwat Medical and SAF Special
The main advantage of trading using opposite Namwiwat Medical and SAF Special positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namwiwat Medical position performs unexpectedly, SAF Special 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 SAF Special will offset losses from the drop in SAF Special's long position.Namwiwat Medical vs. AIM Industrial Growth | Namwiwat Medical vs. PTT OIL RETAIL | Namwiwat Medical vs. CENTRAL RETAIL P | Namwiwat Medical vs. Tanachira Retail |
SAF Special vs. Thai President Foods | SAF Special vs. Praram 9 Hospital | SAF Special vs. THONBURI HEALTHCARE GRO NVDR | SAF Special vs. Bioscience Animal Health |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Fundamental Analysis View fundamental data based on most recent published financial statements |