Correlation Between Aikchol Hospital and Siam Steel
Can any of the company-specific risk be diversified away by investing in both Aikchol Hospital and Siam Steel 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 Aikchol Hospital and Siam Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aikchol Hospital Public and Siam Steel Service, you can compare the effects of market volatilities on Aikchol Hospital and Siam Steel 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 Aikchol Hospital with a short position of Siam Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aikchol Hospital and Siam Steel.
Diversification Opportunities for Aikchol Hospital and Siam Steel
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aikchol and Siam is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Aikchol Hospital Public and Siam Steel Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Steel Service and Aikchol Hospital 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 Aikchol Hospital Public are associated (or correlated) with Siam Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Steel Service has no effect on the direction of Aikchol Hospital i.e., Aikchol Hospital and Siam Steel go up and down completely randomly.
Pair Corralation between Aikchol Hospital and Siam Steel
Assuming the 90 days trading horizon Aikchol Hospital Public is expected to generate 1.0 times more return on investment than Siam Steel. However, Aikchol Hospital Public is 1.0 times less risky than Siam Steel. It trades about 0.08 of its potential returns per unit of risk. Siam Steel Service is currently generating about 0.08 per unit of risk. If you would invest 1,750 in Aikchol Hospital Public on September 3, 2024 and sell it today you would lose (200.00) from holding Aikchol Hospital Public or give up 11.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aikchol Hospital Public vs. Siam Steel Service
Performance |
| Timeline |
| Aikchol Hospital Public |
| Siam Steel Service |
Aikchol Hospital and Siam Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aikchol Hospital and Siam Steel
The main advantage of trading using opposite Aikchol Hospital and Siam Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aikchol Hospital position performs unexpectedly, Siam Steel 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 Steel will offset losses from the drop in Siam Steel's long position.| Aikchol Hospital vs. AP Public | Aikchol Hospital vs. Bumrungrad Hospital Public | Aikchol Hospital vs. Advanced Information Technology | Aikchol Hospital vs. AJ Plast Public |
| Siam Steel vs. Thai Metal Drum | Siam Steel vs. Southern Concrete Pile | Siam Steel vs. STPI Public | Siam Steel vs. Saha Union Public |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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