Correlation Between Singer Thailand and Hwa Fong
Can any of the company-specific risk be diversified away by investing in both Singer Thailand and Hwa Fong 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 Singer Thailand and Hwa Fong into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singer Thailand Public and Hwa Fong Rubber, you can compare the effects of market volatilities on Singer Thailand and Hwa Fong 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 Singer Thailand with a short position of Hwa Fong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singer Thailand and Hwa Fong.
Diversification Opportunities for Singer Thailand and Hwa Fong
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Singer and Hwa is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Singer Thailand Public and Hwa Fong Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hwa Fong Rubber and Singer Thailand 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 Singer Thailand Public are associated (or correlated) with Hwa Fong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hwa Fong Rubber has no effect on the direction of Singer Thailand i.e., Singer Thailand and Hwa Fong go up and down completely randomly.
Pair Corralation between Singer Thailand and Hwa Fong
Assuming the 90 days trading horizon Singer Thailand Public is expected to under-perform the Hwa Fong. In addition to that, Singer Thailand is 4.21 times more volatile than Hwa Fong Rubber. It trades about -0.23 of its total potential returns per unit of risk. Hwa Fong Rubber is currently generating about -0.23 per unit of volatility. If you would invest 424.00 in Hwa Fong Rubber on December 3, 2024 and sell it today you would lose (18.00) from holding Hwa Fong Rubber or give up 4.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Singer Thailand Public vs. Hwa Fong Rubber
Performance |
Timeline |
Singer Thailand Public |
Hwa Fong Rubber |
Singer Thailand and Hwa Fong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Singer Thailand and Hwa Fong
The main advantage of trading using opposite Singer Thailand and Hwa Fong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singer Thailand position performs unexpectedly, Hwa Fong 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 Hwa Fong will offset losses from the drop in Hwa Fong's long position.Singer Thailand vs. Jay Mart Public | Singer Thailand vs. JMT Network Services | Singer Thailand vs. KCE Electronics Public | Singer Thailand vs. Srisawad Power 1979 |
Hwa Fong vs. Haad Thip Public | Hwa Fong vs. AAPICO Hitech Public | Hwa Fong vs. Inoue Rubber Public | Hwa Fong vs. Hana Microelectronics Public |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
Money Managers Screen money managers from public funds and ETFs managed around the world | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |