Correlation Between OSOTSPA PCL and Siam Commercial
Can any of the company-specific risk be diversified away by investing in both OSOTSPA PCL and Siam Commercial 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 OSOTSPA PCL and Siam Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OSOTSPA PCL NVDR and The Siam Commercial, you can compare the effects of market volatilities on OSOTSPA PCL and Siam Commercial 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 OSOTSPA PCL with a short position of Siam Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSOTSPA PCL and Siam Commercial.
Diversification Opportunities for OSOTSPA PCL and Siam Commercial
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between OSOTSPA and Siam is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding OSOTSPA PCL NVDR and The Siam Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Commercial and OSOTSPA PCL 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 OSOTSPA PCL NVDR are associated (or correlated) with Siam Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Commercial has no effect on the direction of OSOTSPA PCL i.e., OSOTSPA PCL and Siam Commercial go up and down completely randomly.
Pair Corralation between OSOTSPA PCL and Siam Commercial
Assuming the 90 days trading horizon OSOTSPA PCL NVDR is expected to under-perform the Siam Commercial. In addition to that, OSOTSPA PCL is 4.89 times more volatile than The Siam Commercial. It trades about -0.2 of its total potential returns per unit of risk. The Siam Commercial is currently generating about 0.21 per unit of volatility. If you would invest 10,945 in The Siam Commercial on August 28, 2024 and sell it today you would earn a total of 555.00 from holding The Siam Commercial or generate 5.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OSOTSPA PCL NVDR vs. The Siam Commercial
Performance |
| Timeline |
| OSOTSPA PCL NVDR |
| Siam Commercial |
OSOTSPA PCL and Siam Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OSOTSPA PCL and Siam Commercial
The main advantage of trading using opposite OSOTSPA PCL and Siam Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OSOTSPA PCL position performs unexpectedly, Siam Commercial 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 Commercial will offset losses from the drop in Siam Commercial's long position.| OSOTSPA PCL vs. Delta Electronics Public | OSOTSPA PCL vs. Delta Electronics Public | OSOTSPA PCL vs. Airports of Thailand | OSOTSPA PCL vs. Airports of Thailand |
| Siam Commercial vs. The Siam Cement | Siam Commercial vs. Krung Thai Bank | Siam Commercial vs. Airports of Thailand | Siam Commercial vs. Kasikornbank Public |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Global Correlations Find global opportunities by holding instruments from different markets |