Correlation Between Healthlead Public and Siam Cement
Can any of the company-specific risk be diversified away by investing in both Healthlead Public 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 Healthlead Public and Siam Cement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthlead Public and The Siam Cement, you can compare the effects of market volatilities on Healthlead Public 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 Healthlead Public with a short position of Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthlead Public and Siam Cement.
Diversification Opportunities for Healthlead Public and Siam Cement
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Healthlead and Siam is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Healthlead 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 Healthlead Public 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 Healthlead 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 Healthlead Public i.e., Healthlead Public and Siam Cement go up and down completely randomly.
Pair Corralation between Healthlead Public and Siam Cement
Assuming the 90 days horizon Healthlead Public is expected to under-perform the Siam Cement. In addition to that, Healthlead Public is 1.65 times more volatile than The Siam Cement. It trades about -0.09 of its total potential returns per unit of risk. The Siam Cement is currently generating about -0.09 per unit of volatility. If you would invest 34,183 in The Siam Cement on September 3, 2024 and sell it today you would lose (15,983) from holding The Siam Cement or give up 46.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthlead Public vs. The Siam Cement
Performance |
| Timeline |
| Healthlead Public |
| Siam Cement |
Healthlead Public and Siam Cement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthlead Public and Siam Cement
The main advantage of trading using opposite Healthlead Public and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthlead Public 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.| Healthlead Public vs. II Group Public | Healthlead Public vs. Dohome Public | Healthlead Public vs. Humanica Public | Healthlead Public vs. Jay Mart Public |
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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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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