Correlation Between Siam Commercial and SRI TRANG
Can any of the company-specific risk be diversified away by investing in both Siam Commercial and SRI TRANG 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 SRI TRANG 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 SRI TRANG GLOVES, you can compare the effects of market volatilities on Siam Commercial and SRI TRANG 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 SRI TRANG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Commercial and SRI TRANG.
Diversification Opportunities for Siam Commercial and SRI TRANG
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siam and SRI is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Commercial and SRI TRANG GLOVES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SRI TRANG GLOVES 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 SRI TRANG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SRI TRANG GLOVES has no effect on the direction of Siam Commercial i.e., Siam Commercial and SRI TRANG go up and down completely randomly.
Pair Corralation between Siam Commercial and SRI TRANG
Assuming the 90 days trading horizon Siam Commercial is expected to generate 9.17 times less return on investment than SRI TRANG. But when comparing it to its historical volatility, The Siam Commercial is 6.28 times less risky than SRI TRANG. It trades about 0.19 of its potential returns per unit of risk. SRI TRANG GLOVES is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 746.00 in SRI TRANG GLOVES on September 3, 2024 and sell it today you would earn a total of 344.00 from holding SRI TRANG GLOVES or generate 46.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Commercial vs. SRI TRANG GLOVES
Performance |
| Timeline |
| Siam Commercial |
| SRI TRANG GLOVES |
Siam Commercial and SRI TRANG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Commercial and SRI TRANG
The main advantage of trading using opposite Siam Commercial and SRI TRANG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Commercial position performs unexpectedly, SRI TRANG 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 SRI TRANG will offset losses from the drop in SRI TRANG'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 |
| SRI TRANG vs. PTT Public | SRI TRANG vs. The Siam Commercial | SRI TRANG vs. Airports of Thailand | SRI TRANG vs. CP ALL 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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