Correlation Between Dow Jones and Sirakorn PCL
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Sirakorn PCL 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 Dow Jones and Sirakorn PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Sirakorn PCL, you can compare the effects of market volatilities on Dow Jones and Sirakorn PCL 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 Dow Jones with a short position of Sirakorn PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Sirakorn PCL.
Diversification Opportunities for Dow Jones and Sirakorn PCL
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dow and Sirakorn is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Sirakorn PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sirakorn PCL and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Sirakorn PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sirakorn PCL has no effect on the direction of Dow Jones i.e., Dow Jones and Sirakorn PCL go up and down completely randomly.
Pair Corralation between Dow Jones and Sirakorn PCL
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.33 times more return on investment than Sirakorn PCL. However, Dow Jones Industrial is 3.03 times less risky than Sirakorn PCL. It trades about 0.37 of its potential returns per unit of risk. Sirakorn PCL is currently generating about -0.18 per unit of risk. If you would invest 4,176,346 in Dow Jones Industrial on September 1, 2024 and sell it today you would earn a total of 314,719 from holding Dow Jones Industrial or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dow Jones Industrial vs. Sirakorn PCL
Performance |
| Timeline |
Dow Jones and Sirakorn PCL Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Sirakorn PCL
Pair trading matchups for Sirakorn PCL
Pair Trading with Dow Jones and Sirakorn PCL
The main advantage of trading using opposite Dow Jones and Sirakorn PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Sirakorn PCL 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 Sirakorn PCL will offset losses from the drop in Sirakorn PCL's long position.| Dow Jones vs. Catalyst Pharmaceuticals | Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. National CineMedia | Dow Jones vs. Mink Therapeutics |
| Sirakorn PCL vs. Peerapat Technology Public | Sirakorn PCL vs. Shrinkflex Public | Sirakorn PCL vs. SiamEast Solutions Public | Sirakorn PCL vs. Smart Concrete 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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