Correlation Between Siam Cement and ALT Telecom
Can any of the company-specific risk be diversified away by investing in both Siam Cement and ALT Telecom 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 ALT Telecom 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 ALT Telecom Public, you can compare the effects of market volatilities on Siam Cement and ALT Telecom 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 ALT Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and ALT Telecom.
Diversification Opportunities for Siam Cement and ALT Telecom
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siam and ALT is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and ALT Telecom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALT Telecom 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 ALT Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALT Telecom Public has no effect on the direction of Siam Cement i.e., Siam Cement and ALT Telecom go up and down completely randomly.
Pair Corralation between Siam Cement and ALT Telecom
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the ALT Telecom. In addition to that, Siam Cement is 1.14 times more volatile than ALT Telecom Public. It trades about -0.29 of its total potential returns per unit of risk. ALT Telecom Public is currently generating about 0.01 per unit of volatility. If you would invest 110.00 in ALT Telecom Public on September 12, 2024 and sell it today you would earn a total of 0.00 from holding ALT Telecom Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Cement vs. ALT Telecom Public
Performance |
| Timeline |
| Siam Cement |
| ALT Telecom Public |
Siam Cement and ALT Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and ALT Telecom
The main advantage of trading using opposite Siam Cement and ALT Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, ALT Telecom 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 ALT Telecom will offset losses from the drop in ALT Telecom's long position.| Siam Cement vs. AAPICO Hitech Public | Siam Cement vs. Siam Technic Concrete | Siam Cement vs. Silicon Craft Technology | Siam Cement vs. Peerapat Technology Public |
| ALT Telecom vs. KCE Electronics Public | ALT Telecom vs. Land and Houses | ALT Telecom vs. Delta Electronics Public | ALT Telecom vs. The Siam Cement |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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