Correlation Between Siam Commercial and OSOTSPA PCL
Can any of the company-specific risk be diversified away by investing in both Siam Commercial and OSOTSPA PCL 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 OSOTSPA PCL 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 OSOTSPA PCL NVDR, you can compare the effects of market volatilities on Siam Commercial and OSOTSPA PCL 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 OSOTSPA PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Commercial and OSOTSPA PCL.
Diversification Opportunities for Siam Commercial and OSOTSPA PCL
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siam and OSOTSPA is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Commercial and OSOTSPA PCL NVDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OSOTSPA PCL NVDR 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 OSOTSPA PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OSOTSPA PCL NVDR has no effect on the direction of Siam Commercial i.e., Siam Commercial and OSOTSPA PCL go up and down completely randomly.
Pair Corralation between Siam Commercial and OSOTSPA PCL
Assuming the 90 days trading horizon The Siam Commercial is expected to generate 30.76 times more return on investment than OSOTSPA PCL. However, Siam Commercial is 30.76 times more volatile than OSOTSPA PCL NVDR. It trades about 0.06 of its potential returns per unit of risk. OSOTSPA PCL NVDR is currently generating about -0.06 per unit of risk. If you would invest 10,400 in The Siam Commercial on November 19, 2024 and sell it today you would earn a total of 1,650 from holding The Siam Commercial or generate 15.87% 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. OSOTSPA PCL NVDR
Performance |
| Timeline |
| Siam Commercial |
| OSOTSPA PCL NVDR |
Siam Commercial and OSOTSPA PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Commercial and OSOTSPA PCL
The main advantage of trading using opposite Siam Commercial and OSOTSPA PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Commercial position performs unexpectedly, OSOTSPA PCL 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 OSOTSPA PCL will offset losses from the drop in OSOTSPA PCL'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 |
| OSOTSPA PCL vs. CP ALL Public | OSOTSPA PCL vs. Charoen Pokphand Foods | OSOTSPA PCL vs. Electricity Generating Public | OSOTSPA PCL vs. PTT 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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