Correlation Between Gatos Silver and Siam Cement
Can any of the company-specific risk be diversified away by investing in both Gatos Silver 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 Gatos Silver and Siam Cement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gatos Silver and The Siam Cement, you can compare the effects of market volatilities on Gatos Silver 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 Gatos Silver with a short position of Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gatos Silver and Siam Cement.
Diversification Opportunities for Gatos Silver and Siam Cement
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gatos and Siam is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Gatos Silver and The Siam Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Cement and Gatos Silver 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 Gatos Silver 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 Gatos Silver i.e., Gatos Silver and Siam Cement go up and down completely randomly.
Pair Corralation between Gatos Silver and Siam Cement
If you would invest 1,382 in Gatos Silver on October 20, 2024 and sell it today you would earn a total of 58.00 from holding Gatos Silver or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Gatos Silver vs. The Siam Cement
Performance |
| Timeline |
| Gatos Silver |
| Siam Cement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gatos Silver and Siam Cement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gatos Silver and Siam Cement
The main advantage of trading using opposite Gatos Silver and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gatos Silver 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.| Gatos Silver vs. Endeavour Silver Corp | Gatos Silver vs. Metalla Royalty Streaming | Gatos Silver vs. New Pacific Metals | Gatos Silver vs. Hecla Mining |
| Siam Cement vs. Chart Industries | Siam Cement vs. Gatos Silver | Siam Cement vs. Everus Construction Group | Siam Cement vs. Summit Materials |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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