Correlation Between Siam Commercial and RPCG Public
Can any of the company-specific risk be diversified away by investing in both Siam Commercial and RPCG Public 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 RPCG Public 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 RPCG Public, you can compare the effects of market volatilities on Siam Commercial and RPCG Public 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 RPCG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Commercial and RPCG Public.
Diversification Opportunities for Siam Commercial and RPCG Public
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siam and RPCG is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Commercial and RPCG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPCG 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 RPCG Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPCG Public has no effect on the direction of Siam Commercial i.e., Siam Commercial and RPCG Public go up and down completely randomly.
Pair Corralation between Siam Commercial and RPCG Public
Assuming the 90 days trading horizon The Siam Commercial is expected to generate 1.41 times more return on investment than RPCG Public. However, Siam Commercial is 1.41 times more volatile than RPCG Public. It trades about 0.06 of its potential returns per unit of risk. RPCG Public is currently generating about 0.04 per unit of risk. If you would invest 10,400 in The Siam Commercial on September 12, 2024 and sell it today you would earn a total of 1,450 from holding The Siam Commercial or generate 13.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Commercial vs. RPCG Public
Performance |
| Timeline |
| Siam Commercial |
| RPCG Public |
Siam Commercial and RPCG Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Commercial and RPCG Public
The main advantage of trading using opposite Siam Commercial and RPCG Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Commercial position performs unexpectedly, RPCG Public 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 RPCG Public will offset losses from the drop in RPCG Public'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 |
| RPCG Public vs. Bangchak Public | RPCG Public vs. IRPC Public | RPCG Public vs. PTT Exploration and | RPCG Public vs. Star Petroleum Refining |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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