Correlation Between Siam Commercial and IFS Capital
Can any of the company-specific risk be diversified away by investing in both Siam Commercial and IFS Capital 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 IFS Capital 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 IFS Capital Public, you can compare the effects of market volatilities on Siam Commercial and IFS Capital 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 IFS Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Commercial and IFS Capital.
Diversification Opportunities for Siam Commercial and IFS Capital
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Siam and IFS is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Commercial and IFS Capital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IFS Capital 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 IFS Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IFS Capital Public has no effect on the direction of Siam Commercial i.e., Siam Commercial and IFS Capital go up and down completely randomly.
Pair Corralation between Siam Commercial and IFS Capital
Assuming the 90 days trading horizon The Siam Commercial is expected to generate 0.87 times more return on investment than IFS Capital. However, The Siam Commercial is 1.15 times less risky than IFS Capital. It trades about 0.29 of its potential returns per unit of risk. IFS Capital Public is currently generating about -0.22 per unit of risk. If you would invest 11,762 in The Siam Commercial on November 2, 2024 and sell it today you would earn a total of 788.00 from holding The Siam Commercial or generate 6.7% 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. IFS Capital Public
Performance |
| Timeline |
| Siam Commercial |
| IFS Capital Public |
Siam Commercial and IFS Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Commercial and IFS Capital
The main advantage of trading using opposite Siam Commercial and IFS Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Commercial position performs unexpectedly, IFS Capital 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 IFS Capital will offset losses from the drop in IFS Capital'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 |
| IFS Capital vs. AIM Industrial Growth | IFS Capital vs. TRV Rubber Products | IFS Capital vs. Hwa Fong Rubber | IFS Capital vs. Information and Communication |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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