Correlation Between EDP Energias and Siam Cement
Can any of the company-specific risk be diversified away by investing in both EDP Energias and Siam Cement 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 EDP Energias and Siam Cement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EDP Energias de and The Siam Cement, you can compare the effects of market volatilities on EDP Energias and Siam Cement 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 EDP Energias with a short position of Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of EDP Energias and Siam Cement.
Diversification Opportunities for EDP Energias and Siam Cement
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EDP and Siam is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding EDP Energias de and The Siam Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Cement and EDP Energias 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 EDP Energias de are associated (or correlated) with Siam Cement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Cement has no effect on the direction of EDP Energias i.e., EDP Energias and Siam Cement go up and down completely randomly.
Pair Corralation between EDP Energias and Siam Cement
Assuming the 90 days horizon EDP Energias de is expected to under-perform the Siam Cement. In addition to that, EDP Energias is 31.74 times more volatile than The Siam Cement. It trades about -0.26 of its total potential returns per unit of risk. The Siam Cement is currently generating about 0.13 per unit of volatility. If you would invest 715.00 in The Siam Cement on September 12, 2024 and sell it today you would earn a total of 3.00 from holding The Siam Cement or generate 0.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EDP Energias de vs. The Siam Cement
Performance |
| Timeline |
| EDP Energias de |
| Siam Cement |
EDP Energias and Siam Cement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EDP Energias and Siam Cement
The main advantage of trading using opposite EDP Energias and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EDP Energias position performs unexpectedly, Siam Cement 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 Cement will offset losses from the drop in Siam Cement's long position.| EDP Energias vs. Atco | EDP Energias vs. Canadian Utilities Limited | EDP Energias vs. Engie SA ADR | EDP Energias vs. The AES |
| Siam Cement vs. EDP Energias | Siam Cement vs. CP ALL Public | Siam Cement vs. Niagara Mohawk Power | Siam Cement vs. Oaktree Capital Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |