Correlation Between RCM Technologies and Siam Cement
Can any of the company-specific risk be diversified away by investing in both RCM Technologies and Siam Cement 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 RCM Technologies and Siam Cement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RCM Technologies and The Siam Cement, you can compare the effects of market volatilities on RCM Technologies and Siam Cement 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 RCM Technologies with a short position of Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of RCM Technologies and Siam Cement.
Diversification Opportunities for RCM Technologies and Siam Cement
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between RCM and Siam is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding RCM Technologies and The Siam Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Cement and RCM Technologies 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 RCM Technologies are associated (or correlated) with Siam Cement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Cement has no effect on the direction of RCM Technologies i.e., RCM Technologies and Siam Cement go up and down completely randomly.
Pair Corralation between RCM Technologies and Siam Cement
If you would invest 489.00 in The Siam Cement on November 27, 2024 and sell it today you would earn a total of 0.00 from holding The Siam Cement or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
RCM Technologies vs. The Siam Cement
Performance |
| Timeline |
| RCM Technologies |
| Siam Cement |
RCM Technologies and Siam Cement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RCM Technologies and Siam Cement
The main advantage of trading using opposite RCM Technologies and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RCM Technologies position performs unexpectedly, Siam Cement 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 Cement will offset losses from the drop in Siam Cement's long position.| RCM Technologies vs. Matthews International | RCM Technologies vs. Mammoth Energy Services | RCM Technologies vs. Griffon | RCM Technologies vs. Steel Partners Holdings |
| Siam Cement vs. FTAI Infrastructure | Siam Cement vs. RCM Technologies | Siam Cement vs. NN Inc | Siam Cement vs. Tejon Ranch Co |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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