Correlation Between VANACHAI GROUP and SVI PUBLIC

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Can any of the company-specific risk be diversified away by investing in both VANACHAI GROUP and SVI PUBLIC 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 VANACHAI GROUP and SVI PUBLIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VANACHAI GROUP PUBLIC and SVI PUBLIC COMPANY, you can compare the effects of market volatilities on VANACHAI GROUP and SVI PUBLIC 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 VANACHAI GROUP with a short position of SVI PUBLIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of VANACHAI GROUP and SVI PUBLIC.

Diversification Opportunities for VANACHAI GROUP and SVI PUBLIC

-0.64
  Correlation Coefficient

Excellent diversification

The 3 months correlation between VANACHAI and SVI PUBLIC is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding VANACHAI GROUP PUBLIC COMPANY and SVI PUBLIC COMPANY LIMITED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SVI PUBLIC COMPANY and VANACHAI GROUP 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 VANACHAI GROUP PUBLIC are associated (or correlated) with SVI PUBLIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SVI PUBLIC COMPANY has no effect on the direction of VANACHAI GROUP i.e., VANACHAI GROUP and SVI PUBLIC go up and down completely randomly.

Pair Corralation between VANACHAI GROUP and SVI PUBLIC

Assuming the 90 days trading horizon VANACHAI GROUP PUBLIC is expected to under-perform the SVI PUBLIC. But the stock apears to be less risky and, when comparing its historical volatility, VANACHAI GROUP PUBLIC is 1.85 times less risky than SVI PUBLIC. The stock trades about -0.07 of its potential returns per unit of risk. The SVI PUBLIC COMPANY is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  480.00  in SVI PUBLIC COMPANY on July 1, 2022 and sell it today you would earn a total of  335.00  from holding SVI PUBLIC COMPANY or generate 69.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

VANACHAI GROUP PUBLIC COMPANY   vs.  SVI PUBLIC COMPANY LIMITED

 Performance (%) 
       Timeline  
VANACHAI GROUP PUBLIC 
VANACHAI Performance
0 of 100
Over the last 90 days VANACHAI GROUP 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 basic indicators remain fairly strong which may send shares a bit higher in October 2022. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

VANACHAI Price Channel

SVI PUBLIC COMPANY 
SVI PUBLIC Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in SVI PUBLIC COMPANY are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, SVI PUBLIC demonstrated solid returns over the last few months and may actually be approaching a breakup point.

SVI PUBLIC Price Channel

VANACHAI GROUP and SVI PUBLIC Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with VANACHAI GROUP and SVI PUBLIC

The main advantage of trading using opposite VANACHAI GROUP and SVI PUBLIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VANACHAI GROUP position performs unexpectedly, SVI PUBLIC 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 SVI PUBLIC will offset losses from the drop in SVI PUBLIC's long position.
The idea behind VANACHAI GROUP PUBLIC and SVI PUBLIC COMPANY 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 Global Correlations module to find global opportunities by holding instruments from different markets.

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