Correlation Between Siam Commercial and Ticon Freehold
Can any of the company-specific risk be diversified away by investing in both Siam Commercial and Ticon Freehold 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 Ticon Freehold 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 Ticon Freehold and, you can compare the effects of market volatilities on Siam Commercial and Ticon Freehold 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 Ticon Freehold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Commercial and Ticon Freehold.
Diversification Opportunities for Siam Commercial and Ticon Freehold
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siam and Ticon is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Commercial and Ticon Freehold and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ticon Freehold 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 Ticon Freehold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ticon Freehold has no effect on the direction of Siam Commercial i.e., Siam Commercial and Ticon Freehold go up and down completely randomly.
Pair Corralation between Siam Commercial and Ticon Freehold
Assuming the 90 days trading horizon The Siam Commercial is expected to generate 0.68 times more return on investment than Ticon Freehold. However, The Siam Commercial is 1.47 times less risky than Ticon Freehold. It trades about 0.19 of its potential returns per unit of risk. Ticon Freehold and is currently generating about -0.05 per unit of risk. If you would invest 10,945 in The Siam Commercial on September 1, 2024 and sell it today you would earn a total of 505.00 from holding The Siam Commercial or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Commercial vs. Ticon Freehold and
Performance |
| Timeline |
| Siam Commercial |
| Ticon Freehold |
Siam Commercial and Ticon Freehold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Commercial and Ticon Freehold
The main advantage of trading using opposite Siam Commercial and Ticon Freehold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Commercial position performs unexpectedly, Ticon Freehold 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 Ticon Freehold will offset losses from the drop in Ticon Freehold'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 |
| Ticon Freehold vs. WHA Premium Growth | Ticon Freehold vs. CPN Retail Growth | Ticon Freehold vs. Impact Growth REIT | Ticon Freehold vs. Golden Ventures Leasehold |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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