Correlation Between Virgin Group and Siam Makro
Can any of the company-specific risk be diversified away by investing in both Virgin Group and Siam Makro 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 Virgin Group and Siam Makro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virgin Group Acquisition and Siam Makro PCL, you can compare the effects of market volatilities on Virgin Group and Siam Makro 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 Virgin Group with a short position of Siam Makro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virgin Group and Siam Makro.
Diversification Opportunities for Virgin Group and Siam Makro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Virgin and Siam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Virgin Group Acquisition and Siam Makro PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Makro PCL and Virgin Group 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 Virgin Group Acquisition are associated (or correlated) with Siam Makro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Makro PCL has no effect on the direction of Virgin Group i.e., Virgin Group and Siam Makro go up and down completely randomly.
Pair Corralation between Virgin Group and Siam Makro
Given the investment horizon of 90 days Virgin Group Acquisition is expected to generate 14.94 times more return on investment than Siam Makro. However, Virgin Group is 14.94 times more volatile than Siam Makro PCL. It trades about 0.02 of its potential returns per unit of risk. Siam Makro PCL is currently generating about 0.06 per unit of risk. If you would invest 182.00 in Virgin Group Acquisition on September 5, 2024 and sell it today you would lose (33.00) from holding Virgin Group Acquisition or give up 18.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 56.97% |
| Values | Daily Returns |
Virgin Group Acquisition vs. Siam Makro PCL
Performance |
| Timeline |
| Virgin Group Acquisition |
| Siam Makro PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Virgin Group and Siam Makro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virgin Group and Siam Makro
The main advantage of trading using opposite Virgin Group and Siam Makro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virgin Group position performs unexpectedly, Siam Makro 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 Makro will offset losses from the drop in Siam Makro's long position.| Virgin Group vs. Mannatech Incorporated | Virgin Group vs. Edgewell Personal Care | Virgin Group vs. Inter Parfums | Virgin Group vs. Nu Skin Enterprises |
| Siam Makro vs. Eastern Co | Siam Makro vs. Virgin Group Acquisition | Siam Makro vs. Acme United | Siam Makro vs. Skechers USA |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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