Correlation Between Siam Commercial and Absolute Clean
Can any of the company-specific risk be diversified away by investing in both Siam Commercial and Absolute Clean 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 Siam Commercial and Absolute Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Siam Commercial and Absolute Clean Energy, you can compare the effects of market volatilities on Siam Commercial and Absolute Clean 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 Siam Commercial with a short position of Absolute Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Commercial and Absolute Clean.
Diversification Opportunities for Siam Commercial and Absolute Clean
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siam and Absolute is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Commercial and Absolute Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolute Clean Energy and Siam Commercial 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 The Siam Commercial are associated (or correlated) with Absolute Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolute Clean Energy has no effect on the direction of Siam Commercial i.e., Siam Commercial and Absolute Clean go up and down completely randomly.
Pair Corralation between Siam Commercial and Absolute Clean
Assuming the 90 days trading horizon The Siam Commercial is expected to generate 0.9 times more return on investment than Absolute Clean. However, The Siam Commercial is 1.11 times less risky than Absolute Clean. It trades about 0.29 of its potential returns per unit of risk. Absolute Clean Energy is currently generating about -0.05 per unit of risk. If you would invest 11,762 in The Siam Commercial on November 2, 2024 and sell it today you would earn a total of 788.00 from holding The Siam Commercial or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Siam Commercial vs. Absolute Clean Energy
Performance |
| Timeline |
| Siam Commercial |
| Absolute Clean Energy |
Siam Commercial and Absolute Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Commercial and Absolute Clean
The main advantage of trading using opposite Siam Commercial and Absolute Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Commercial position performs unexpectedly, Absolute Clean 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 Absolute Clean will offset losses from the drop in Absolute Clean's long position.| Siam Commercial vs. The Siam Cement | Siam Commercial vs. Krung Thai Bank | Siam Commercial vs. Airports of Thailand | Siam Commercial vs. Kasikornbank Public |
| Absolute Clean vs. BCPG Public | Absolute Clean vs. CK Power Public | Absolute Clean vs. TPI Polene Power | Absolute Clean vs. Earth Tech Environment |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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