Correlation Between Siam Global and II Group
Can any of the company-specific risk be diversified away by investing in both Siam Global and II Group 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 Siam Global and II Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siam Global House and II Group Public, you can compare the effects of market volatilities on Siam Global and II Group 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 Siam Global with a short position of II Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Global and II Group.
Diversification Opportunities for Siam Global and II Group
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Siam and IIG is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Siam Global House and II Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on II Group Public and Siam Global 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 Siam Global House are associated (or correlated) with II Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of II Group Public has no effect on the direction of Siam Global i.e., Siam Global and II Group go up and down completely randomly.
Pair Corralation between Siam Global and II Group
Assuming the 90 days trading horizon Siam Global is expected to generate 168.98 times less return on investment than II Group. But when comparing it to its historical volatility, Siam Global House is 75.02 times less risky than II Group. It trades about 0.05 of its potential returns per unit of risk. II Group Public is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 462.00 in II Group Public on August 28, 2024 and sell it today you would earn a total of 48.00 from holding II Group Public or generate 10.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siam Global House vs. II Group Public
Performance |
| Timeline |
| Siam Global House |
| II Group Public |
Siam Global and II Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Global and II Group
The main advantage of trading using opposite Siam Global and II Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Global position performs unexpectedly, II Group 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 II Group will offset losses from the drop in II Group's long position.| Siam Global vs. Home Product Center | Siam Global vs. Bangkok Dusit Medical | Siam Global vs. Carabao Group Public | Siam Global vs. Global Power Synergy |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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