Correlation Between General Environmental and Siam Cement
Can any of the company-specific risk be diversified away by investing in both General Environmental 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 General Environmental and Siam Cement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Environmental Conservation and The Siam Cement, you can compare the effects of market volatilities on General Environmental 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 General Environmental with a short position of Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Environmental and Siam Cement.
Diversification Opportunities for General Environmental and Siam Cement
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between General and Siam is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding General Environmental Conserva and The Siam Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Cement and General Environmental 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 General Environmental Conservation 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 General Environmental i.e., General Environmental and Siam Cement go up and down completely randomly.
Pair Corralation between General Environmental and Siam Cement
Assuming the 90 days trading horizon General Environmental Conservation is expected to generate 42.37 times more return on investment than Siam Cement. However, General Environmental is 42.37 times more volatile than The Siam Cement. It trades about 0.06 of its potential returns per unit of risk. The Siam Cement is currently generating about -0.11 per unit of risk. If you would invest 51.00 in General Environmental Conservation on September 4, 2024 and sell it today you would lose (3.00) from holding General Environmental Conservation or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Environmental Conserva vs. The Siam Cement
Performance |
| Timeline |
| General Environmental |
| Siam Cement |
General Environmental and Siam Cement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Environmental and Siam Cement
The main advantage of trading using opposite General Environmental and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Environmental 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.| General Environmental vs. Asia Aviation Public | General Environmental vs. Bangkok Dusit Medical | General Environmental vs. Bangkok Expressway and | General Environmental vs. Airports of Thailand |
| Siam Cement vs. Eastern Technical Engineering | Siam Cement vs. General Environmental Conservation | Siam Cement vs. Silicon Craft Technology | Siam Cement vs. NAT ABSOLUTE TECHNOLOGIES |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |