Correlation Between Pentair PLC and Siam Makro
Can any of the company-specific risk be diversified away by investing in both Pentair PLC 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 Pentair PLC and Siam Makro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pentair PLC and Siam Makro PCL, you can compare the effects of market volatilities on Pentair PLC 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 Pentair PLC with a short position of Siam Makro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pentair PLC and Siam Makro.
Diversification Opportunities for Pentair PLC and Siam Makro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pentair and Siam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pentair PLC 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 Pentair PLC 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 Pentair PLC 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 Pentair PLC i.e., Pentair PLC and Siam Makro go up and down completely randomly.
Pair Corralation between Pentair PLC and Siam Makro
If you would invest 9,859 in Pentair PLC on September 13, 2024 and sell it today you would earn a total of 1,062 from holding Pentair PLC or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.38% |
| Values | Daily Returns |
Pentair PLC vs. Siam Makro PCL
Performance |
| Timeline |
| Pentair PLC |
| Siam Makro PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Pentair PLC and Siam Makro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pentair PLC and Siam Makro
The main advantage of trading using opposite Pentair PLC and Siam Makro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pentair PLC 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.| Pentair PLC vs. Hurco Companies | Pentair PLC vs. Enerpac Tool Group | Pentair PLC vs. China Yuchai International | Pentair PLC vs. Luxfer Holdings PLC |
| Siam Makro vs. Ryanair Holdings PLC | Siam Makro vs. Pentair PLC | Siam Makro vs. BCE Inc | Siam Makro vs. Westinghouse Air Brake |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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