Correlation Between Siam Cement and Asia Metal
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Asia Metal 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 Asia Metal 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 Asia Metal Public, you can compare the effects of market volatilities on Siam Cement and Asia Metal 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 Asia Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Asia Metal.
Diversification Opportunities for Siam Cement and Asia Metal
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siam and Asia is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Asia Metal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Metal 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 Asia Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Metal Public has no effect on the direction of Siam Cement i.e., Siam Cement and Asia Metal go up and down completely randomly.
Pair Corralation between Siam Cement and Asia Metal
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the Asia Metal. But the stock apears to be less risky and, when comparing its historical volatility, The Siam Cement is 34.56 times less risky than Asia Metal. The stock trades about -0.08 of its potential returns per unit of risk. The Asia Metal Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 267.00 in Asia Metal Public on September 3, 2024 and sell it today you would earn a total of 19.00 from holding Asia Metal Public or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Cement vs. Asia Metal Public
Performance |
| Timeline |
| Siam Cement |
| Asia Metal Public |
Siam Cement and Asia Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and Asia Metal
The main advantage of trading using opposite Siam Cement and Asia Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Asia Metal 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 Asia Metal will offset losses from the drop in Asia Metal's long position.| Siam Cement vs. Rojana Industrial Park | Siam Cement vs. CPR Gomu Industrial | Siam Cement vs. BPS TECHNOLOGY PUBLIC | Siam Cement vs. 2S Metal Public |
| Asia Metal vs. PTT Public | Asia Metal vs. PTT Exploration and | Asia Metal vs. The Siam Cement | Asia Metal vs. CP ALL 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |