Correlation Between Arrow Syndicate and Siam City
Can any of the company-specific risk be diversified away by investing in both Arrow Syndicate 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 Arrow Syndicate and Siam City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arrow Syndicate Public and Siam City Cement, you can compare the effects of market volatilities on Arrow Syndicate 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 Arrow Syndicate with a short position of Siam City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arrow Syndicate and Siam City.
Diversification Opportunities for Arrow Syndicate and Siam City
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Arrow and Siam is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Arrow Syndicate 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 Arrow Syndicate 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 Arrow Syndicate 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 Arrow Syndicate i.e., Arrow Syndicate and Siam City go up and down completely randomly.
Pair Corralation between Arrow Syndicate and Siam City
Assuming the 90 days trading horizon Arrow Syndicate Public is expected to under-perform the Siam City. But the stock apears to be less risky and, when comparing its historical volatility, Arrow Syndicate Public is 2.4 times less risky than Siam City. The stock trades about -0.13 of its potential returns per unit of risk. The Siam City Cement is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 14,650 in Siam City Cement on September 1, 2024 and sell it today you would earn a total of 1,500 from holding Siam City Cement or generate 10.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Arrow Syndicate Public vs. Siam City Cement
Performance |
Timeline |
Arrow Syndicate Public |
Siam City Cement |
Arrow Syndicate and Siam City Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Arrow Syndicate and Siam City
The main advantage of trading using opposite Arrow Syndicate and Siam City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arrow Syndicate 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.Arrow Syndicate vs. Aqua Public | Arrow Syndicate vs. Union Auction Public | Arrow Syndicate vs. Ama Marine Public | Arrow Syndicate vs. Akkhie Prakarn Public |
Siam City vs. Wave Entertainment Public | Siam City vs. Vibhavadi Medical Center | Siam City vs. TPI Polene Public | Siam City vs. Asia Green Energy |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |