Correlation Between Sub Sri and Amata Summit

Can any of the company-specific risk be diversified away by investing in both Sub Sri and Amata Summit 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 Sub Sri and Amata Summit into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sub Sri Thai and Amata Summit Growth, you can compare the effects of market volatilities on Sub Sri and Amata Summit 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 Sub Sri with a short position of Amata Summit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sub Sri and Amata Summit.

Diversification Opportunities for Sub Sri and Amata Summit

0.0

Correlation Coefficient

Sub Sri  Amata Summit

Pay attention - limited upside

The 3 months correlation between Sub and Amata is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sub Sri Thai and Amata Summit Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amata Summit Growth and Sub Sri 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 Sub Sri Thai are associated (or correlated) with Amata Summit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amata Summit Growth has no effect on the direction of Sub Sri i.e., Sub Sri and Amata Summit go up and down completely randomly.

Pair Corralation between Sub Sri and Amata Summit

If you would invest  610.00  in Amata Summit Growth on September 3, 2024 and sell it today you would earn a total of  55.00  from holding Amata Summit Growth or generate 9.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sub Sri Thai  vs.  Amata Summit Growth

Sub Sri Thai

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Sub Sri Thai has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Sub Sri is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Amata Summit Growth

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Amata Summit Growth are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Amata Summit may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Sub Sri and Amata Summit

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

The idea behind Sub Sri Thai and Amata Summit Growth 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.