Correlation Between Prodigy Public and Siam Wellness
Can any of the company-specific risk be diversified away by investing in both Prodigy 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 Prodigy 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 Prodigy Public and Siam Wellness Group, you can compare the effects of market volatilities on Prodigy 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 Prodigy Public with a short position of Siam Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prodigy Public and Siam Wellness.
Diversification Opportunities for Prodigy Public and Siam Wellness
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Prodigy and Siam is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Prodigy 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 Prodigy 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 Prodigy 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 Prodigy Public i.e., Prodigy Public and Siam Wellness go up and down completely randomly.
Pair Corralation between Prodigy Public and Siam Wellness
Assuming the 90 days trading horizon Prodigy Public is expected to under-perform the Siam Wellness. But the stock apears to be less risky and, when comparing its historical volatility, Prodigy Public is 2.17 times less risky than Siam Wellness. The stock trades about -0.02 of its potential returns per unit of risk. The Siam Wellness Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 660.00 in Siam Wellness Group on September 3, 2024 and sell it today you would earn a total of 60.00 from holding Siam Wellness Group or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prodigy Public vs. Siam Wellness Group
Performance |
| Timeline |
| Prodigy Public |
| Siam Wellness Group |
Prodigy Public and Siam Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prodigy Public and Siam Wellness
The main advantage of trading using opposite Prodigy Public and Siam Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prodigy 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.| Prodigy Public vs. AJ Plast Public | Prodigy Public vs. Thai Metal Drum | Prodigy Public vs. Thantawan Industry Public | Prodigy Public vs. Panjawattana Plastic Public |
| Siam Wellness vs. Minor International Public | Siam Wellness vs. Central Plaza Hotel | Siam Wellness vs. The Erawan Group | Siam Wellness vs. After You 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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