Correlation Between S Khonkaen and 3BB INTERNET

Can any of the company-specific risk be diversified away by investing in both S Khonkaen and 3BB INTERNET 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 S Khonkaen and 3BB INTERNET into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between S Khonkaen Foods and 3BB INTERNET INFRASTRUCTURE, you can compare the effects of market volatilities on S Khonkaen and 3BB INTERNET 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 S Khonkaen with a short position of 3BB INTERNET. Check out your portfolio center. Please also check ongoing floating volatility patterns of S Khonkaen and 3BB INTERNET.

Diversification Opportunities for S Khonkaen and 3BB INTERNET

0.8

Correlation Coefficient

S Khonkaen  3BB INTERNET

Very poor diversification

The 3 months correlation between SORKON and 3BB is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding S Khonkaen Foods and 3BB INTERNET INFRASTRUCTURE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3BB INTERNET INFRAST and S Khonkaen 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 S Khonkaen Foods are associated (or correlated) with 3BB INTERNET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3BB INTERNET INFRAST has no effect on the direction of S Khonkaen i.e., S Khonkaen and 3BB INTERNET go up and down completely randomly.

Pair Corralation between S Khonkaen and 3BB INTERNET

Assuming the 90 days trading horizon S Khonkaen Foods is expected to under-perform the 3BB INTERNET. But the stock apears to be less risky and, when comparing its historical volatility, S Khonkaen Foods is 1.9 times less risky than 3BB INTERNET. The stock trades about -0.31 of its potential returns per unit of risk. The 3BB INTERNET INFRASTRUCTURE is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest  530.00  in 3BB INTERNET INFRASTRUCTURE on October 25, 2024 and sell it today you would lose (15.00) from holding 3BB INTERNET INFRASTRUCTURE or give up 2.83% of portfolio value over 90 days.

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

S Khonkaen Foods  vs.  3BB INTERNET INFRASTRUCTURE

S Khonkaen Foods

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days S Khonkaen Foods has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

3BB INTERNET INFRAST

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 3BB INTERNET INFRASTRUCTURE 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.

Pair Trading with S Khonkaen and 3BB INTERNET

The main advantage of trading using opposite S Khonkaen and 3BB INTERNET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if S Khonkaen position performs unexpectedly, 3BB INTERNET 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 3BB INTERNET will offset losses from the drop in 3BB INTERNET's long position.

The idea behind S Khonkaen Foods and 3BB INTERNET INFRASTRUCTURE 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.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.