Correlation Between Siam Commercial and Ichitan Group
Can any of the company-specific risk be diversified away by investing in both Siam Commercial and Ichitan Group 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 Ichitan Group 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 Ichitan Group Public, you can compare the effects of market volatilities on Siam Commercial and Ichitan Group 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 Ichitan Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Commercial and Ichitan Group.
Diversification Opportunities for Siam Commercial and Ichitan Group
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siam and Ichitan is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Commercial and Ichitan Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ichitan Group 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 Ichitan Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ichitan Group Public has no effect on the direction of Siam Commercial i.e., Siam Commercial and Ichitan Group go up and down completely randomly.
Pair Corralation between Siam Commercial and Ichitan Group
Assuming the 90 days trading horizon Siam Commercial is expected to generate 1.5 times less return on investment than Ichitan Group. But when comparing it to its historical volatility, The Siam Commercial is 1.22 times less risky than Ichitan Group. It trades about 0.06 of its potential returns per unit of risk. Ichitan Group Public is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,150 in Ichitan Group Public on September 19, 2024 and sell it today you would earn a total of 290.00 from holding Ichitan Group Public or generate 25.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
The Siam Commercial vs. Ichitan Group Public
Performance |
| Timeline |
| Siam Commercial |
| Ichitan Group Public |
Siam Commercial and Ichitan Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Commercial and Ichitan Group
The main advantage of trading using opposite Siam Commercial and Ichitan Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Commercial position performs unexpectedly, Ichitan Group 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 Ichitan Group will offset losses from the drop in Ichitan Group'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 |
| Ichitan Group vs. Ichitan Group Public | Ichitan Group vs. The Siam Commercial | Ichitan Group vs. Rojana Industrial Park | Ichitan Group vs. WHA Utilities and |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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