Correlation Between BCE and Siam Makro
Can any of the company-specific risk be diversified away by investing in both BCE and Siam Makro 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 BCE and Siam Makro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCE Inc and Siam Makro PCL, you can compare the effects of market volatilities on BCE and Siam Makro 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 BCE with a short position of Siam Makro. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCE and Siam Makro.
Diversification Opportunities for BCE and Siam Makro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BCE and Siam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BCE Inc and Siam Makro PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Makro PCL and BCE 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 BCE Inc are associated (or correlated) with Siam Makro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Makro PCL has no effect on the direction of BCE i.e., BCE and Siam Makro go up and down completely randomly.
Pair Corralation between BCE and Siam Makro
Considering the 90-day investment horizon BCE Inc is expected to under-perform the Siam Makro. In addition to that, BCE is 2.8 times more volatile than Siam Makro PCL. It trades about -0.07 of its total potential returns per unit of risk. Siam Makro PCL is currently generating about 0.06 per unit of volatility. If you would invest 100.00 in Siam Makro PCL on September 14, 2024 and sell it today you would earn a total of 6.00 from holding Siam Makro PCL or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 55.67% |
| Values | Daily Returns |
BCE Inc vs. Siam Makro PCL
Performance |
| Timeline |
| BCE Inc |
| Siam Makro PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BCE and Siam Makro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCE and Siam Makro
The main advantage of trading using opposite BCE and Siam Makro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCE position performs unexpectedly, Siam Makro 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 Makro will offset losses from the drop in Siam Makro's long position.The idea behind BCE Inc and Siam Makro PCL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Siam Makro vs. Starbucks | Siam Makro vs. Zijin Mining Group | Siam Makro vs. BJs Restaurants | Siam Makro vs. Mediag3 |
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..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |