Correlation Between Oracle and Siam City
Can any of the company-specific risk be diversified away by investing in both Oracle and Siam City 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 Oracle and Siam City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oracle and Siam City Cement, you can compare the effects of market volatilities on Oracle and Siam City 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 Oracle with a short position of Siam City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oracle and Siam City.
Diversification Opportunities for Oracle and Siam City
Pay attention - limited upside
The 3 months correlation between Oracle and Siam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Oracle and Siam City Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam City Cement and Oracle 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 Oracle are associated (or correlated) with Siam City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam City Cement has no effect on the direction of Oracle i.e., Oracle and Siam City go up and down completely randomly.
Pair Corralation between Oracle and Siam City
If you would invest 16,959 in Oracle on September 4, 2024 and sell it today you would earn a total of 1,182 from holding Oracle or generate 6.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Oracle vs. Siam City Cement
Performance |
| Timeline |
| Oracle |
| Siam City Cement |
Oracle and Siam City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oracle and Siam City
The main advantage of trading using opposite Oracle and Siam City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oracle position performs unexpectedly, Siam City 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 City will offset losses from the drop in Siam City's long position.| Oracle vs. Palo Alto Networks | Oracle vs. Crowdstrike Holdings | Oracle vs. Microsoft | Oracle vs. Block Inc |
| Siam City vs. Maanshan Iron Steel | Siam City vs. BCE Inc | Siam City vs. Kaiser Aluminum | Siam City vs. China Clean 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |