Correlation Between Siam Commercial and Indara Insurance
Can any of the company-specific risk be diversified away by investing in both Siam Commercial and Indara Insurance 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 Indara Insurance 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 Indara Insurance Public, you can compare the effects of market volatilities on Siam Commercial and Indara Insurance 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 Indara Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Commercial and Indara Insurance.
Diversification Opportunities for Siam Commercial and Indara Insurance
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siam and Indara is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Commercial and Indara Insurance Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indara Insurance 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 Indara Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indara Insurance Public has no effect on the direction of Siam Commercial i.e., Siam Commercial and Indara Insurance go up and down completely randomly.
Pair Corralation between Siam Commercial and Indara Insurance
Assuming the 90 days trading horizon The Siam Commercial is expected to generate 0.45 times more return on investment than Indara Insurance. However, The Siam Commercial is 2.2 times less risky than Indara Insurance. It trades about 0.2 of its potential returns per unit of risk. Indara Insurance Public is currently generating about 0.08 per unit of risk. If you would invest 11,778 in The Siam Commercial on October 20, 2024 and sell it today you would earn a total of 372.00 from holding The Siam Commercial or generate 3.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
The Siam Commercial vs. Indara Insurance Public
Performance |
| Timeline |
| Siam Commercial |
| Indara Insurance Public |
Siam Commercial and Indara Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Commercial and Indara Insurance
The main advantage of trading using opposite Siam Commercial and Indara Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Commercial position performs unexpectedly, Indara Insurance 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 Indara Insurance will offset losses from the drop in Indara Insurance'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 |
| Indara Insurance vs. IFS Capital Public | Indara Insurance vs. Internet Thailand Public | Indara Insurance vs. Hwa Fong Rubber | Indara Insurance vs. Haad Thip Public |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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