Correlation Between Project Planning and SiamEast Solutions
Can any of the company-specific risk be diversified away by investing in both Project Planning and SiamEast Solutions 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 Project Planning and SiamEast Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Project Planning Service and SiamEast Solutions Public, you can compare the effects of market volatilities on Project Planning and SiamEast Solutions 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 Project Planning with a short position of SiamEast Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Project Planning and SiamEast Solutions.
Diversification Opportunities for Project Planning and SiamEast Solutions
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Project and SiamEast is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Project Planning Service and SiamEast Solutions Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SiamEast Solutions Public and Project Planning 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 Project Planning Service are associated (or correlated) with SiamEast Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SiamEast Solutions Public has no effect on the direction of Project Planning i.e., Project Planning and SiamEast Solutions go up and down completely randomly.
Pair Corralation between Project Planning and SiamEast Solutions
Assuming the 90 days trading horizon Project Planning Service is expected to generate 1.0 times more return on investment than SiamEast Solutions. However, Project Planning is 1.0 times more volatile than SiamEast Solutions Public. It trades about 0.04 of its potential returns per unit of risk. SiamEast Solutions Public is currently generating about 0.04 per unit of risk. If you would invest 51.00 in Project Planning Service on September 12, 2024 and sell it today you would lose (30.00) from holding Project Planning Service or give up 58.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Project Planning Service vs. SiamEast Solutions Public
Performance |
| Timeline |
| Project Planning Service |
| SiamEast Solutions Public |
Project Planning and SiamEast Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Project Planning and SiamEast Solutions
The main advantage of trading using opposite Project Planning and SiamEast Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Project Planning position performs unexpectedly, SiamEast Solutions 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 SiamEast Solutions will offset losses from the drop in SiamEast Solutions' long position.| Project Planning vs. Sabuy Technology Public | Project Planning vs. Takuni Group Public | Project Planning vs. SVI Public | Project Planning vs. The Erawan Group |
| SiamEast Solutions vs. Sea Oil Public | SiamEast Solutions vs. SGF Capital Public | SiamEast Solutions vs. Project Planning Service | SiamEast Solutions vs. Panjawattana Plastic 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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