Correlation Between Somboon Advance and Vintcom Technology

Can any of the company-specific risk be diversified away by investing in both Somboon Advance and Vintcom Technology 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 Somboon Advance and Vintcom Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Somboon Advance Technology and Vintcom Technology PCL, you can compare the effects of market volatilities on Somboon Advance and Vintcom Technology 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 Somboon Advance with a short position of Vintcom Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Somboon Advance and Vintcom Technology.

Diversification Opportunities for Somboon Advance and Vintcom Technology

0.78

Correlation Coefficient

Somboon Advance  Vintcom Technology

Poor diversification

The 3 months correlation between Somboon and Vintcom is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Somboon Advance Technology and Vintcom Technology PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vintcom Technology PCL and Somboon Advance 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 Somboon Advance Technology are associated (or correlated) with Vintcom Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vintcom Technology PCL has no effect on the direction of Somboon Advance i.e., Somboon Advance and Vintcom Technology go up and down completely randomly.

Pair Corralation between Somboon Advance and Vintcom Technology

Assuming the 90 days trading horizon Somboon Advance is expected to generate 1.94 times less return on investment than Vintcom Technology. But when comparing it to its historical volatility, Somboon Advance Technology is 1.81 times less risky than Vintcom Technology. It trades about 0.11 of its potential returns per unit of risk. Vintcom Technology PCL is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  246.00  in Vintcom Technology PCL on April 22, 2025 and sell it today you would earn a total of  46.00  from holding Vintcom Technology PCL or generate 18.7% return on investment over 90 days.

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

Somboon Advance Technology  vs.  Vintcom Technology PCL

Somboon Advance Tech

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Somboon Advance Technology are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Somboon Advance may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Vintcom Technology PCL

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vintcom Technology PCL are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting forward-looking signals, Vintcom Technology disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Somboon Advance and Vintcom Technology

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

The idea behind Somboon Advance Technology and Vintcom Technology 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.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.