Correlation Between Rojana Industrial and Siam Commercial
Can any of the company-specific risk be diversified away by investing in both Rojana Industrial and Siam Commercial 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 Rojana Industrial and Siam Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rojana Industrial Park and The Siam Commercial, you can compare the effects of market volatilities on Rojana Industrial and Siam Commercial 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 Rojana Industrial with a short position of Siam Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rojana Industrial and Siam Commercial.
Diversification Opportunities for Rojana Industrial and Siam Commercial
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rojana and Siam is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Rojana Industrial Park and The Siam Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Commercial and Rojana Industrial 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 Rojana Industrial Park are associated (or correlated) with Siam Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Commercial has no effect on the direction of Rojana Industrial i.e., Rojana Industrial and Siam Commercial go up and down completely randomly.
Pair Corralation between Rojana Industrial and Siam Commercial
Assuming the 90 days trading horizon Rojana Industrial Park is expected to under-perform the Siam Commercial. In addition to that, Rojana Industrial is 1.22 times more volatile than The Siam Commercial. It trades about -0.2 of its total potential returns per unit of risk. The Siam Commercial is currently generating about 0.22 per unit of volatility. If you would invest 10,945 in The Siam Commercial on September 19, 2024 and sell it today you would earn a total of 655.00 from holding The Siam Commercial or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Rojana Industrial Park vs. The Siam Commercial
Performance |
| Timeline |
| Rojana Industrial Park |
| Siam Commercial |
Rojana Industrial and Siam Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rojana Industrial and Siam Commercial
The main advantage of trading using opposite Rojana Industrial and Siam Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rojana Industrial position performs unexpectedly, Siam Commercial 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 Commercial will offset losses from the drop in Siam Commercial's long position.| Rojana Industrial vs. Chiangmai Frozen Foods | Rojana Industrial vs. Symphony Communication Public | Rojana Industrial vs. Turnkey Communication Services | Rojana Industrial vs. Interlink Communication Public |
| Siam Commercial vs. PTT Public | Siam Commercial vs. CP ALL Public | Siam Commercial vs. SCB X Public | Siam Commercial vs. Airports of Thailand |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |