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 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
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EDP and Siam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EDP Energias 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 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 is expected to under-perform the Siam Cement. But the otc stock apears to be less risky and, when comparing its historical volatility, EDP Energias is 2.21 times less risky than Siam Cement. The otc stock trades about -0.02 of its potential returns per unit of risk. The The Siam Cement is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 738.00 in The Siam Cement on September 2, 2024 and sell it today you would lose (20.00) from holding The Siam Cement or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 86.06% |
| Values | Daily Returns |
EDP Energias vs. The Siam Cement
Performance |
| Timeline |
| EDP Energias |
| 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. EDP Energias de | EDP Energias vs. EDP Renovaveis | EDP Energias vs. EON SE | EDP Energias vs. Endesa SA ADR |
| Siam Cement vs. FTAI Infrastructure | Siam Cement vs. RCM Technologies | Siam Cement vs. NN Inc | Siam Cement vs. Tejon Ranch Co |
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.
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