Correlation Between 3BB INTERNET and Siam Cement
Can any of the company-specific risk be diversified away by investing in both 3BB INTERNET and Siam Cement 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 3BB INTERNET and Siam Cement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 3BB INTERNET INFRASTRUCTURE and The Siam Cement, you can compare the effects of market volatilities on 3BB INTERNET and Siam Cement 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 3BB INTERNET with a short position of Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3BB INTERNET and Siam Cement.
Diversification Opportunities for 3BB INTERNET and Siam Cement
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 3BB and Siam is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding 3BB INTERNET INFRASTRUCTURE and The Siam Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Cement and 3BB INTERNET 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 3BB INTERNET INFRASTRUCTURE are associated (or correlated) with Siam Cement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Cement has no effect on the direction of 3BB INTERNET i.e., 3BB INTERNET and Siam Cement go up and down completely randomly.
Pair Corralation between 3BB INTERNET and Siam Cement
Assuming the 90 days trading horizon 3BB INTERNET INFRASTRUCTURE is expected to under-perform the Siam Cement. But the stock apears to be less risky and, when comparing its historical volatility, 3BB INTERNET INFRASTRUCTURE is 1.83 times less risky than Siam Cement. The stock trades about -0.4 of its potential returns per unit of risk. The The Siam Cement is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 20,400 in The Siam Cement on August 28, 2024 and sell it today you would lose (1,100) from holding The Siam Cement or give up 5.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
3BB INTERNET INFRASTRUCTURE vs. The Siam Cement
Performance |
| Timeline |
| 3BB INTERNET INFRAST |
| Siam Cement |
3BB INTERNET and Siam Cement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3BB INTERNET and Siam Cement
The main advantage of trading using opposite 3BB INTERNET and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3BB INTERNET position performs unexpectedly, Siam Cement 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 Siam Cement will offset losses from the drop in Siam Cement's long position.| 3BB INTERNET vs. Delta Electronics Public | 3BB INTERNET vs. Delta Electronics Public | 3BB INTERNET vs. Airports of Thailand | 3BB INTERNET vs. Airports of Thailand |
| Siam Cement vs. 3BB INTERNET INFRASTRUCTURE | Siam Cement vs. ALL ENERGY UTILITIES | Siam Cement vs. CHUWIT FARM PUBLIC | Siam Cement vs. Lotus Retail Growth |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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