Correlation Between Humanica Public and Siam Wellness
Can any of the company-specific risk be diversified away by investing in both Humanica Public and Siam Wellness 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 Humanica Public and Siam Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Humanica Public and Siam Wellness Group, you can compare the effects of market volatilities on Humanica Public and Siam Wellness 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 Humanica Public with a short position of Siam Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Humanica Public and Siam Wellness.
Diversification Opportunities for Humanica Public and Siam Wellness
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Humanica and Siam is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Humanica Public and Siam Wellness Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Wellness Group and Humanica 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 Humanica Public are associated (or correlated) with Siam Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Wellness Group has no effect on the direction of Humanica Public i.e., Humanica Public and Siam Wellness go up and down completely randomly.
Pair Corralation between Humanica Public and Siam Wellness
Assuming the 90 days trading horizon Humanica Public is expected to under-perform the Siam Wellness. In addition to that, Humanica Public is 1.05 times more volatile than Siam Wellness Group. It trades about -0.01 of its total potential returns per unit of risk. Siam Wellness Group is currently generating about 0.01 per unit of volatility. If you would invest 752.00 in Siam Wellness Group on September 3, 2024 and sell it today you would lose (32.00) from holding Siam Wellness Group or give up 4.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Humanica Public vs. Siam Wellness Group
Performance |
| Timeline |
| Humanica Public |
| Siam Wellness Group |
Humanica Public and Siam Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Humanica Public and Siam Wellness
The main advantage of trading using opposite Humanica Public and Siam Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Humanica Public position performs unexpectedly, Siam Wellness 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 Wellness will offset losses from the drop in Siam Wellness' long position.| Humanica Public vs. Home Product Center | Humanica Public vs. Hana Microelectronics Public | Humanica Public vs. Gulf Energy Development | Humanica Public vs. Forth 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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