Correlation Between Home Product and Siam Technic
Can any of the company-specific risk be diversified away by investing in both Home Product and Siam Technic 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 Home Product and Siam Technic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Home Product Center and Siam Technic Concrete, you can compare the effects of market volatilities on Home Product and Siam Technic 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 Home Product with a short position of Siam Technic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Home Product and Siam Technic.
Diversification Opportunities for Home Product and Siam Technic
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Home and Siam is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Home Product Center and Siam Technic Concrete in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Technic Concrete and Home Product 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 Home Product Center are associated (or correlated) with Siam Technic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Technic Concrete has no effect on the direction of Home Product i.e., Home Product and Siam Technic go up and down completely randomly.
Pair Corralation between Home Product and Siam Technic
Assuming the 90 days trading horizon Home Product Center is expected to generate 1.12 times more return on investment than Siam Technic. However, Home Product is 1.12 times more volatile than Siam Technic Concrete. It trades about 0.05 of its potential returns per unit of risk. Siam Technic Concrete is currently generating about -0.11 per unit of risk. If you would invest 890.00 in Home Product Center on September 2, 2024 and sell it today you would earn a total of 55.00 from holding Home Product Center or generate 6.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Home Product Center vs. Siam Technic Concrete
Performance |
| Timeline |
| Home Product Center |
| Siam Technic Concrete |
Home Product and Siam Technic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Home Product and Siam Technic
The main advantage of trading using opposite Home Product and Siam Technic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Home Product position performs unexpectedly, Siam Technic 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 Technic will offset losses from the drop in Siam Technic's long position.| Home Product vs. CP ALL Public | Home Product vs. Bangkok Dusit Medical | Home Product vs. Central Pattana Public | Home Product vs. Advanced Info Service |
| Siam Technic vs. Wave Entertainment Public | Siam Technic vs. Vibhavadi Medical Center | Siam Technic vs. TPI Polene Public | Siam Technic vs. Asia Green Energy |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |