Correlation Between Airports and Siam Commercial
Can any of the company-specific risk be diversified away by investing in both Airports and Siam Commercial 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 Airports and Siam Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airports of Thailand and The Siam Commercial, you can compare the effects of market volatilities on Airports and Siam Commercial 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 Airports with a short position of Siam Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airports and Siam Commercial.
Diversification Opportunities for Airports and Siam Commercial
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Airports and Siam is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding Airports of Thailand and The Siam Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Commercial and Airports 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 Airports of Thailand are associated (or correlated) with Siam Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Commercial has no effect on the direction of Airports i.e., Airports and Siam Commercial go up and down completely randomly.
Pair Corralation between Airports and Siam Commercial
Assuming the 90 days trading horizon Airports is expected to generate 1.01 times less return on investment than Siam Commercial. In addition to that, Airports is 1.0 times more volatile than The Siam Commercial. It trades about 0.13 of its total potential returns per unit of risk. The Siam Commercial is currently generating about 0.13 per unit of volatility. If you would invest 0.00 in The Siam Commercial on November 2, 2024 and sell it today you would earn a total of 12,550 from holding The Siam Commercial or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airports of Thailand vs. The Siam Commercial
Performance |
| Timeline |
| Airports of Thailand |
| Siam Commercial |
Airports and Siam Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airports and Siam Commercial
The main advantage of trading using opposite Airports and Siam Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airports position performs unexpectedly, Siam Commercial 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 Commercial will offset losses from the drop in Siam Commercial's long position.| Airports vs. CP ALL Public | Airports vs. PTT Public | Airports vs. Bangkok Dusit Medical | Airports vs. The Siam Cement |
| Siam Commercial vs. The Siam Cement | Siam Commercial vs. Krung Thai Bank | Siam Commercial vs. Airports of Thailand | Siam Commercial vs. Kasikornbank 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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