Correlation Between Samart Digital and Asia Sermkij

Can any of the company-specific risk be diversified away by investing in both Samart Digital and Asia Sermkij 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 Samart Digital and Asia Sermkij into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Samart Digital Public and Asia Sermkij Leasing, you can compare the effects of market volatilities on Samart Digital and Asia Sermkij 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 Samart Digital with a short position of Asia Sermkij. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samart Digital and Asia Sermkij.

Diversification Opportunities for Samart Digital and Asia Sermkij

0.22

Correlation Coefficient

Samart Digital  Asia Sermkij

Modest diversification

The 3 months correlation between Samart and Asia is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Samart Digital Public and Asia Sermkij Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Sermkij Leasing and Samart Digital 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 Samart Digital Public are associated (or correlated) with Asia Sermkij. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Sermkij Leasing has no effect on the direction of Samart Digital i.e., Samart Digital and Asia Sermkij go up and down completely randomly.

Pair Corralation between Samart Digital and Asia Sermkij

Assuming the 90 days trading horizon Samart Digital Public is expected to generate 14.98 times more return on investment than Asia Sermkij. However, Samart Digital is 14.98 times more volatile than Asia Sermkij Leasing. It trades about 0.12 of its potential returns per unit of risk. Asia Sermkij Leasing is currently generating about 0.02 per unit of risk. If you would invest  3.00  in Samart Digital Public on April 24, 2025 and sell it today you would earn a total of  1.00  from holding Samart Digital Public or generate 33.33% return on investment over 90 days.

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

Samart Digital Public  vs.  Asia Sermkij Leasing

Samart Digital Public

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Samart Digital Public are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental indicators, Samart Digital disclosed solid returns over the last few months and may actually be approaching a breakup point.

Asia Sermkij Leasing

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Asia Sermkij Leasing are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Asia Sermkij is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Samart Digital and Asia Sermkij

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

The idea behind Samart Digital Public and Asia Sermkij Leasing 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.