Correlation Between Lord Global and Siam Makro
Can any of the company-specific risk be diversified away by investing in both Lord Global 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 Lord Global and Siam Makro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lord Global Corp and Siam Makro PCL, you can compare the effects of market volatilities on Lord Global 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 Lord Global with a short position of Siam Makro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lord Global and Siam Makro.
Diversification Opportunities for Lord Global and Siam Makro
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Lord and Siam is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Lord Global Corp 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 Lord Global 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 Lord Global Corp 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 Lord Global i.e., Lord Global and Siam Makro go up and down completely randomly.
Pair Corralation between Lord Global and Siam Makro
If you would invest 106.00 in Siam Makro PCL on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Siam Makro PCL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lord Global Corp vs. Siam Makro PCL
Performance |
| Timeline |
| Lord Global Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Siam Makro PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lord Global and Siam Makro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lord Global and Siam Makro
The main advantage of trading using opposite Lord Global and Siam Makro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lord Global 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.| Lord Global vs. Bridgford Foods | Lord Global vs. SL Green Realty | Lord Global vs. Axalta Coating Systems | Lord Global vs. Sligro Food Group |
| Siam Makro vs. TFI International | Siam Makro vs. Sun Country Airlines | Siam Makro vs. Haverty Furniture Companies | Siam Makro vs. Afya |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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