Correlation Between Siam Commercial and General Environmental
Can any of the company-specific risk be diversified away by investing in both Siam Commercial and General Environmental 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 General Environmental 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 General Environmental Conservation, you can compare the effects of market volatilities on Siam Commercial and General Environmental 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 General Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Commercial and General Environmental.
Diversification Opportunities for Siam Commercial and General Environmental
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siam and General is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Commercial and General Environmental Conserva in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Environmental 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 General Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Environmental has no effect on the direction of Siam Commercial i.e., Siam Commercial and General Environmental go up and down completely randomly.
Pair Corralation between Siam Commercial and General Environmental
Assuming the 90 days trading horizon The Siam Commercial is expected to generate 1.41 times more return on investment than General Environmental. However, Siam Commercial is 1.41 times more volatile than General Environmental Conservation. It trades about 0.06 of its potential returns per unit of risk. General Environmental Conservation is currently generating about 0.04 per unit of risk. If you would invest 10,310 in The Siam Commercial on September 5, 2024 and sell it today you would earn a total of 1,290 from holding The Siam Commercial or generate 12.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Commercial vs. General Environmental Conserva
Performance |
| Timeline |
| Siam Commercial |
| General Environmental |
Siam Commercial and General Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Commercial and General Environmental
The main advantage of trading using opposite Siam Commercial and General Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Commercial position performs unexpectedly, General Environmental 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 General Environmental will offset losses from the drop in General Environmental's long position.| Siam Commercial vs. PTT Public | Siam Commercial vs. CP ALL Public | Siam Commercial vs. SCB X Public | Siam Commercial vs. Airports of Thailand |
| General Environmental vs. Asia Aviation Public | General Environmental vs. Bangkok Dusit Medical | General Environmental vs. Bangkok Expressway and | General Environmental 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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