Correlation Between Singha Estate and Siri Prime
Can any of the company-specific risk be diversified away by investing in both Singha Estate and Siri Prime 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 Singha Estate and Siri Prime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singha Estate Public and Siri Prime Office, you can compare the effects of market volatilities on Singha Estate and Siri Prime 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 Singha Estate with a short position of Siri Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singha Estate and Siri Prime.
Diversification Opportunities for Singha Estate and Siri Prime
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Singha and Siri is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Singha Estate Public and Siri Prime Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siri Prime Office and Singha Estate 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 Singha Estate Public are associated (or correlated) with Siri Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siri Prime Office has no effect on the direction of Singha Estate i.e., Singha Estate and Siri Prime go up and down completely randomly.
Pair Corralation between Singha Estate and Siri Prime
Given the investment horizon of 90 days Singha Estate Public is expected to under-perform the Siri Prime. In addition to that, Singha Estate is 1.62 times more volatile than Siri Prime Office. It trades about -0.19 of its total potential returns per unit of risk. Siri Prime Office is currently generating about -0.07 per unit of volatility. If you would invest 171.00 in Siri Prime Office on December 28, 2024 and sell it today you would lose (12.00) from holding Siri Prime Office or give up 7.02% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Singha Estate Public vs. Siri Prime Office
Performance |
Timeline |
Singha Estate Public |
Siri Prime Office |
Singha Estate and Siri Prime Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Singha Estate and Siri Prime
The main advantage of trading using opposite Singha Estate and Siri Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singha Estate position performs unexpectedly, Siri Prime 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 Siri Prime will offset losses from the drop in Siri Prime's long position.Singha Estate vs. Siri Prime Office | Singha Estate vs. WHA Public | Singha Estate vs. Supalai Public | Singha Estate vs. Quality Houses Public |
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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.
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