Correlation Between ATRenew and Siam Makro
Can any of the company-specific risk be diversified away by investing in both ATRenew 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 ATRenew and Siam Makro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATRenew Inc DRC and Siam Makro PCL, you can compare the effects of market volatilities on ATRenew 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 ATRenew with a short position of Siam Makro. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATRenew and Siam Makro.
Diversification Opportunities for ATRenew and Siam Makro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ATRenew and Siam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ATRenew Inc DRC 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 ATRenew 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 ATRenew Inc DRC 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 ATRenew i.e., ATRenew and Siam Makro go up and down completely randomly.
Pair Corralation between ATRenew and Siam Makro
If you would invest 235.00 in ATRenew Inc DRC on September 5, 2024 and sell it today you would earn a total of 103.00 from holding ATRenew Inc DRC or generate 43.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
ATRenew Inc DRC vs. Siam Makro PCL
Performance |
| Timeline |
| ATRenew Inc DRC |
| Siam Makro PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ATRenew and Siam Makro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATRenew and Siam Makro
The main advantage of trading using opposite ATRenew and Siam Makro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATRenew 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.The idea behind ATRenew Inc DRC and Siam Makro PCL pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Siam Makro vs. Eastern Co | Siam Makro vs. Virgin Group Acquisition | Siam Makro vs. Acme United | Siam Makro vs. Skechers USA |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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