Correlation Between Sabuy Technology and Thai Vegetable

Can any of the company-specific risk be diversified away by investing in both Sabuy Technology and Thai Vegetable 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 Sabuy Technology and Thai Vegetable into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sabuy Technology Public and Thai Vegetable Oil, you can compare the effects of market volatilities on Sabuy Technology and Thai Vegetable 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 Sabuy Technology with a short position of Thai Vegetable. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabuy Technology and Thai Vegetable.

Diversification Opportunities for Sabuy Technology and Thai Vegetable

0.16

Correlation Coefficient

Sabuy Technology  Thai Vegetable

Average diversification

The 3 months correlation between Sabuy and Thai is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Sabuy Technology Public and Thai Vegetable Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Vegetable Oil and Sabuy Technology 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 Sabuy Technology Public are associated (or correlated) with Thai Vegetable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Vegetable Oil has no effect on the direction of Sabuy Technology i.e., Sabuy Technology and Thai Vegetable go up and down completely randomly.

Pair Corralation between Sabuy Technology and Thai Vegetable

Assuming the 90 days trading horizon Sabuy Technology Public is expected to generate 9.38 times more return on investment than Thai Vegetable. However, Sabuy Technology is 9.38 times more volatile than Thai Vegetable Oil. It trades about 0.19 of its potential returns per unit of risk. Thai Vegetable Oil is currently generating about -0.18 per unit of risk. If you would invest  47.00  in Sabuy Technology Public on October 10, 2024 and sell it today you would earn a total of  13.00  from holding Sabuy Technology Public or generate 27.66% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Sabuy Technology Public  vs.  Thai Vegetable Oil

Sabuy Technology Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sabuy Technology Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Thai Vegetable Oil

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Thai Vegetable Oil are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Thai Vegetable sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sabuy Technology and Thai Vegetable

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

The idea behind Sabuy Technology Public and Thai Vegetable Oil 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.