Correlation Between Gunkul Engineering and Siam Cement
Can any of the company-specific risk be diversified away by investing in both Gunkul Engineering 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 Gunkul Engineering and Siam Cement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gunkul Engineering Public and The Siam Cement, you can compare the effects of market volatilities on Gunkul Engineering 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 Gunkul Engineering with a short position of Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gunkul Engineering and Siam Cement.
Diversification Opportunities for Gunkul Engineering and Siam Cement
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gunkul and Siam is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Gunkul Engineering Public and The Siam Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Cement and Gunkul Engineering 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 Gunkul Engineering Public 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 Gunkul Engineering i.e., Gunkul Engineering and Siam Cement go up and down completely randomly.
Pair Corralation between Gunkul Engineering and Siam Cement
Assuming the 90 days trading horizon Gunkul Engineering Public is expected to generate 0.99 times more return on investment than Siam Cement. However, Gunkul Engineering Public is 1.01 times less risky than Siam Cement. It trades about -0.03 of its potential returns per unit of risk. The Siam Cement is currently generating about -0.04 per unit of risk. If you would invest 315.00 in Gunkul Engineering Public on August 27, 2024 and sell it today you would lose (83.00) from holding Gunkul Engineering Public or give up 26.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gunkul Engineering Public vs. The Siam Cement
Performance |
| Timeline |
| Gunkul Engineering Public |
| Siam Cement |
Gunkul Engineering and Siam Cement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gunkul Engineering and Siam Cement
The main advantage of trading using opposite Gunkul Engineering and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gunkul Engineering 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.| Gunkul Engineering vs. Tata Steel Public | Gunkul Engineering vs. Thaifoods Group Public | Gunkul Engineering vs. TMT Steel Public | Gunkul Engineering vs. The Erawan Group |
| Siam Cement vs. NCL International Logistics | Siam Cement vs. The Erawan Group | Siam Cement vs. Airports of Thailand | Siam Cement vs. Eastern Technical Engineering |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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