Correlation Between Siam Commercial and Charan Insurance
Can any of the company-specific risk be diversified away by investing in both Siam Commercial and Charan Insurance 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 Charan Insurance 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 Charan Insurance Public, you can compare the effects of market volatilities on Siam Commercial and Charan Insurance 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 Charan Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Commercial and Charan Insurance.
Diversification Opportunities for Siam Commercial and Charan Insurance
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Siam and Charan is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Commercial and Charan Insurance Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charan Insurance Public 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 Charan Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charan Insurance Public has no effect on the direction of Siam Commercial i.e., Siam Commercial and Charan Insurance go up and down completely randomly.
Pair Corralation between Siam Commercial and Charan Insurance
Assuming the 90 days trading horizon The Siam Commercial is expected to generate 1.41 times more return on investment than Charan Insurance. However, Siam Commercial is 1.41 times more volatile than Charan Insurance Public. It trades about 0.13 of its potential returns per unit of risk. Charan Insurance Public is currently generating about 0.1 per unit of risk. If you would invest 0.00 in The Siam Commercial on November 2, 2024 and sell it today you would earn a total of 12,550 from holding The Siam Commercial or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Commercial vs. Charan Insurance Public
Performance |
| Timeline |
| Siam Commercial |
| Charan Insurance Public |
Siam Commercial and Charan Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Commercial and Charan Insurance
The main advantage of trading using opposite Siam Commercial and Charan Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Commercial position performs unexpectedly, Charan Insurance 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 Charan Insurance will offset losses from the drop in Charan Insurance'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 |
| Charan Insurance vs. Bhiraj Office Leasehold | Charan Insurance vs. Charoen Pokphand Foods | Charan Insurance vs. Exotic Food Public | Charan Insurance vs. Chiangmai Frozen Foods |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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