Correlation Between SCB X and Maybank Securities
Can any of the company-specific risk be diversified away by investing in both SCB X and Maybank Securities 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 SCB X and Maybank Securities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCB X Public and Maybank Securities PCL, you can compare the effects of market volatilities on SCB X and Maybank Securities 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 SCB X with a short position of Maybank Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCB X and Maybank Securities.
Diversification Opportunities for SCB X and Maybank Securities
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCB and Maybank is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SCB X Public and Maybank Securities PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maybank Securities PCL and SCB X 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 SCB X Public are associated (or correlated) with Maybank Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maybank Securities PCL has no effect on the direction of SCB X i.e., SCB X and Maybank Securities go up and down completely randomly.
Pair Corralation between SCB X and Maybank Securities
If you would invest 10,464 in SCB X Public on March 9, 2024 and sell it today you would earn a total of 36.00 from holding SCB X Public or generate 0.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
SCB X Public vs. Maybank Securities PCL
Performance |
Timeline |
SCB X Public |
Maybank Securities PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
SCB X and Maybank Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SCB X and Maybank Securities
The main advantage of trading using opposite SCB X and Maybank Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCB X position performs unexpectedly, Maybank Securities 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 Maybank Securities will offset losses from the drop in Maybank Securities' long position.The idea behind SCB X Public and Maybank Securities PCL 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.Maybank Securities vs. Lohakit Metal Public | Maybank Securities vs. Kiatnakin Phatra Bank | Maybank Securities vs. KGI Securities Public | Maybank Securities vs. Asia Plus Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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