Correlation Between Siam Commercial and Symphony Communication
Can any of the company-specific risk be diversified away by investing in both Siam Commercial and Symphony Communication 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 Symphony Communication 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 Symphony Communication Public, you can compare the effects of market volatilities on Siam Commercial and Symphony Communication 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 Symphony Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Commercial and Symphony Communication.
Diversification Opportunities for Siam Commercial and Symphony Communication
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siam and Symphony is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Commercial and Symphony Communication Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symphony Communication 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 Symphony Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symphony Communication has no effect on the direction of Siam Commercial i.e., Siam Commercial and Symphony Communication go up and down completely randomly.
Pair Corralation between Siam Commercial and Symphony Communication
Assuming the 90 days trading horizon The Siam Commercial is expected to generate 45.98 times more return on investment than Symphony Communication. However, Siam Commercial is 45.98 times more volatile than Symphony Communication Public. It trades about 0.11 of its potential returns per unit of risk. Symphony Communication Public is currently generating about 0.06 per unit of risk. If you would invest 10,945 in The Siam Commercial on September 12, 2024 and sell it today you would earn a total of 855.00 from holding The Siam Commercial or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.39% |
| Values | Daily Returns |
The Siam Commercial vs. Symphony Communication Public
Performance |
| Timeline |
| Siam Commercial |
| Symphony Communication |
Siam Commercial and Symphony Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Commercial and Symphony Communication
The main advantage of trading using opposite Siam Commercial and Symphony Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Commercial position performs unexpectedly, Symphony Communication 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 Symphony Communication will offset losses from the drop in Symphony Communication'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 |
| Symphony Communication vs. Synnex Public | Symphony Communication vs. SVOA Public | Symphony Communication vs. Samart Telcoms Public | Symphony Communication vs. SVI 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |