Correlation Between Siam Commercial and Eastern Power
Can any of the company-specific risk be diversified away by investing in both Siam Commercial and Eastern Power 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 Eastern Power 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 Eastern Power Group, you can compare the effects of market volatilities on Siam Commercial and Eastern Power 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 Eastern Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Commercial and Eastern Power.
Diversification Opportunities for Siam Commercial and Eastern Power
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Siam and Eastern is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Commercial and Eastern Power Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Power Group 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 Eastern Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Power Group has no effect on the direction of Siam Commercial i.e., Siam Commercial and Eastern Power go up and down completely randomly.
Pair Corralation between Siam Commercial and Eastern Power
Assuming the 90 days trading horizon The Siam Commercial is expected to generate 44.19 times more return on investment than Eastern Power. However, Siam Commercial is 44.19 times more volatile than Eastern Power Group. It trades about 0.13 of its potential returns per unit of risk. Eastern Power Group is currently generating about -0.07 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Commercial vs. Eastern Power Group
Performance |
| Timeline |
| Siam Commercial |
| Eastern Power Group |
Siam Commercial and Eastern Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Commercial and Eastern Power
The main advantage of trading using opposite Siam Commercial and Eastern Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Commercial position performs unexpectedly, Eastern Power 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 Eastern Power will offset losses from the drop in Eastern Power'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 |
| Eastern Power vs. BCPG Public | Eastern Power vs. Diamond Building Products | Eastern Power vs. Earth Tech Environment | Eastern Power vs. TPI Polene Power |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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