Correlation Between Siam Cement and Ditto Public
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Ditto 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 Cement and Ditto Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Siam Cement and Ditto Public, you can compare the effects of market volatilities on Siam Cement and Ditto 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 Cement with a short position of Ditto Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Ditto Public.
Diversification Opportunities for Siam Cement and Ditto Public
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siam and Ditto is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Ditto Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ditto Public and Siam Cement 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 Cement are associated (or correlated) with Ditto Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ditto Public has no effect on the direction of Siam Cement i.e., Siam Cement and Ditto Public go up and down completely randomly.
Pair Corralation between Siam Cement and Ditto Public
Assuming the 90 days trading horizon The Siam Cement is expected to generate 0.55 times more return on investment than Ditto Public. However, The Siam Cement is 1.83 times less risky than Ditto Public. It trades about -0.04 of its potential returns per unit of risk. Ditto Public is currently generating about -0.05 per unit of risk. If you would invest 32,096 in The Siam Cement on August 31, 2024 and sell it today you would lose (13,596) from holding The Siam Cement or give up 42.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
The Siam Cement vs. Ditto Public
Performance |
| Timeline |
| Siam Cement |
| Ditto Public |
Siam Cement and Ditto Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and Ditto Public
The main advantage of trading using opposite Siam Cement and Ditto Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Ditto 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 Ditto Public will offset losses from the drop in Ditto Public's long position.| Siam Cement vs. PTT Public | Siam Cement vs. The Siam Commercial | Siam Cement vs. Airports of Thailand | Siam Cement vs. CP ALL Public |
| Ditto Public vs. Dohome Public | Ditto Public vs. Beryl 8 Plus | Ditto Public vs. Forth Public | Ditto Public vs. Delta Electronics 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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