Correlation Between Siam Cement and OSOTSPA PCL
Can any of the company-specific risk be diversified away by investing in both Siam Cement 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 Cement 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 Cement and OSOTSPA PCL NVDR, you can compare the effects of market volatilities on Siam Cement 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 Cement with a short position of OSOTSPA PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and OSOTSPA PCL.
Diversification Opportunities for Siam Cement and OSOTSPA PCL
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siam and OSOTSPA is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement 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 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 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 Cement i.e., Siam Cement and OSOTSPA PCL go up and down completely randomly.
Pair Corralation between Siam Cement and OSOTSPA PCL
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the OSOTSPA PCL. In addition to that, Siam Cement is 1.64 times more volatile than OSOTSPA PCL NVDR. It trades about -0.21 of its total potential returns per unit of risk. OSOTSPA PCL NVDR is currently generating about -0.2 per unit of volatility. If you would invest 2,816 in OSOTSPA PCL NVDR on August 28, 2024 and sell it today you would lose (686.00) from holding OSOTSPA PCL NVDR or give up 24.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Cement vs. OSOTSPA PCL NVDR
Performance |
| Timeline |
| Siam Cement |
| OSOTSPA PCL NVDR |
Siam Cement and OSOTSPA PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and OSOTSPA PCL
The main advantage of trading using opposite Siam Cement and OSOTSPA PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement 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 Cement vs. PTT Public | Siam Cement vs. The Siam Commercial | Siam Cement vs. Airports of Thailand | Siam Cement vs. CP ALL Public |
| OSOTSPA PCL vs. Delta Electronics Public | OSOTSPA PCL vs. Delta Electronics Public | OSOTSPA PCL vs. Airports of Thailand | OSOTSPA PCL vs. Airports of Thailand |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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