Correlation Between Siam Cement and Alucon Public
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Alucon 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 Alucon 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 Alucon Public, you can compare the effects of market volatilities on Siam Cement and Alucon 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 Alucon Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Alucon Public.
Diversification Opportunities for Siam Cement and Alucon Public
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siam and Alucon is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Alucon Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alucon 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 Alucon Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alucon Public has no effect on the direction of Siam Cement i.e., Siam Cement and Alucon Public go up and down completely randomly.
Pair Corralation between Siam Cement and Alucon Public
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the Alucon Public. In addition to that, Siam Cement is 2.85 times more volatile than Alucon Public. It trades about -0.39 of its total potential returns per unit of risk. Alucon Public is currently generating about -0.07 per unit of volatility. If you would invest 17,200 in Alucon Public on September 4, 2024 and sell it today you would lose (150.00) from holding Alucon Public or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Cement vs. Alucon Public
Performance |
| Timeline |
| Siam Cement |
| Alucon Public |
Siam Cement and Alucon Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and Alucon Public
The main advantage of trading using opposite Siam Cement and Alucon Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Alucon 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 Alucon Public will offset losses from the drop in Alucon Public's long position.| Siam Cement vs. Eastern Technical Engineering | Siam Cement vs. General Environmental Conservation | Siam Cement vs. Silicon Craft Technology | Siam Cement vs. NAT ABSOLUTE TECHNOLOGIES |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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