Correlation Between BJs Restaurants and Siam Makro
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants 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 BJs Restaurants and Siam Makro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and Siam Makro PCL, you can compare the effects of market volatilities on BJs Restaurants 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 BJs Restaurants with a short position of Siam Makro. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and Siam Makro.
Diversification Opportunities for BJs Restaurants and Siam Makro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BJs and Siam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants 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 BJs Restaurants 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 BJs Restaurants 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 BJs Restaurants i.e., BJs Restaurants and Siam Makro go up and down completely randomly.
Pair Corralation between BJs Restaurants and Siam Makro
If you would invest 106.00 in Siam Makro PCL on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Siam Makro PCL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
BJs Restaurants vs. Siam Makro PCL
Performance |
| Timeline |
| BJs Restaurants |
| Siam Makro PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BJs Restaurants and Siam Makro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and Siam Makro
The main advantage of trading using opposite BJs Restaurants and Siam Makro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants 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 BJs Restaurants 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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