Correlation Between Aqua Public and Siam City
Can any of the company-specific risk be diversified away by investing in both Aqua Public 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 Aqua Public and Siam City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqua Public and Siam City Cement, you can compare the effects of market volatilities on Aqua Public 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 Aqua Public with a short position of Siam City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqua Public and Siam City.
Diversification Opportunities for Aqua Public and Siam City
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aqua and Siam is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Aqua 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 Aqua Public 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 Aqua 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 Aqua Public i.e., Aqua Public and Siam City go up and down completely randomly.
Pair Corralation between Aqua Public and Siam City
Assuming the 90 days trading horizon Aqua Public is expected to generate 2.11 times less return on investment than Siam City. But when comparing it to its historical volatility, Aqua Public is 1.41 times less risky than Siam City. It trades about 0.04 of its potential returns per unit of risk. 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqua Public vs. Siam City Cement
Performance |
| Timeline |
| Aqua Public |
| Siam City Cement |
Aqua Public and Siam City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqua Public and Siam City
The main advantage of trading using opposite Aqua Public and Siam City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqua Public 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.| Aqua Public vs. SRI TRANG GLOVES | Aqua Public vs. AEON Thana Sinsap | Aqua Public vs. Asian Alliance International | Aqua Public vs. Sikarin Public |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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