Correlation Between Mediag3 and Siam Makro
Can any of the company-specific risk be diversified away by investing in both Mediag3 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 Mediag3 and Siam Makro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mediag3 and Siam Makro PCL, you can compare the effects of market volatilities on Mediag3 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 Mediag3 with a short position of Siam Makro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mediag3 and Siam Makro.
Diversification Opportunities for Mediag3 and Siam Makro
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Mediag3 and Siam is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Mediag3 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 Mediag3 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 Mediag3 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 Mediag3 i.e., Mediag3 and Siam Makro go up and down completely randomly.
Pair Corralation between Mediag3 and Siam Makro
If you would invest 106.00 in Siam Makro PCL on September 14, 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 | 4.76% |
| Values | Daily Returns |
Mediag3 vs. Siam Makro PCL
Performance |
| Timeline |
| Mediag3 |
| Siam Makro PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mediag3 and Siam Makro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mediag3 and Siam Makro
The main advantage of trading using opposite Mediag3 and Siam Makro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mediag3 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.| Mediag3 vs. 17 Education Technology | Mediag3 vs. Four Seasons Education | Mediag3 vs. Western Digital | Mediag3 vs. Minerals Technologies |
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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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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