Correlation Between Air Liquide and Siam Cement
Can any of the company-specific risk be diversified away by investing in both Air Liquide 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 Air Liquide and Siam Cement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Air Liquide SA and The Siam Cement, you can compare the effects of market volatilities on Air Liquide 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 Air Liquide with a short position of Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Liquide and Siam Cement.
Diversification Opportunities for Air Liquide and Siam Cement
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Air and Siam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Air Liquide SA and The Siam Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Cement and Air Liquide 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 Air Liquide SA 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 Air Liquide i.e., Air Liquide and Siam Cement go up and down completely randomly.
Pair Corralation between Air Liquide and Siam Cement
If you would invest 3,027 in Air Liquide SA on December 4, 2024 and sell it today you would earn a total of 735.00 from holding Air Liquide SA or generate 24.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Air Liquide SA vs. The Siam Cement
Performance |
| Timeline |
| Air Liquide SA |
| Siam Cement |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Air Liquide and Siam Cement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Air Liquide and Siam Cement
The main advantage of trading using opposite Air Liquide and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Liquide 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.| Air Liquide vs. Asia Carbon Industries | Air Liquide vs. Akzo Nobel NV | Air Liquide vs. Avoca LLC | Air Liquide vs. AGC Inc ADR |
| Siam Cement vs. Seadrill Limited | Siam Cement vs. Tenaris SA ADR | Siam Cement vs. Ainsworth Game Technology | Siam Cement vs. Vantage Drilling International |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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