Correlation Between Ama Marine and Siam City
Can any of the company-specific risk be diversified away by investing in both Ama Marine and Siam City 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 Ama Marine and Siam City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ama Marine Public and Siam City Cement, you can compare the effects of market volatilities on Ama Marine and Siam City 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 Ama Marine with a short position of Siam City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ama Marine and Siam City.
Diversification Opportunities for Ama Marine and Siam City
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ama and Siam is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ama Marine Public and Siam City Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam City Cement and Ama Marine 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 Ama Marine Public are associated (or correlated) with Siam City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam City Cement has no effect on the direction of Ama Marine i.e., Ama Marine and Siam City go up and down completely randomly.
Pair Corralation between Ama Marine and Siam City
Assuming the 90 days trading horizon Ama Marine Public is expected to under-perform the Siam City. But the stock apears to be less risky and, when comparing its historical volatility, Ama Marine Public is 38.19 times less risky than Siam City. The stock trades about 0.0 of its potential returns per unit of risk. The Siam City Cement is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 14,650 in Siam City Cement on September 5, 2024 and sell it today you would earn a total of 1,650 from holding Siam City Cement or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Ama Marine Public vs. Siam City Cement
Performance |
| Timeline |
| Ama Marine Public |
| Siam City Cement |
Ama Marine and Siam City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ama Marine and Siam City
The main advantage of trading using opposite Ama Marine and Siam City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ama Marine position performs unexpectedly, Siam City 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 City will offset losses from the drop in Siam City's long position.| Ama Marine vs. Namyong Terminal PCL | Ama Marine vs. Prima Marine Public | Ama Marine vs. Precious Shipping Public | Ama Marine vs. Vibhavadi Medical Center |
| Siam City vs. Aqua Public | Siam City vs. Union Auction Public | Siam City vs. Ama Marine Public | Siam City vs. Akkhie Prakarn 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |