Correlation Between Siam Cement and Chonburi Concrete
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Chonburi Concrete 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 Chonburi Concrete 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 Chonburi Concrete Product, you can compare the effects of market volatilities on Siam Cement and Chonburi Concrete 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 Chonburi Concrete. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Chonburi Concrete.
Diversification Opportunities for Siam Cement and Chonburi Concrete
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siam and Chonburi is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Chonburi Concrete Product in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chonburi Concrete Product 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 Chonburi Concrete. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chonburi Concrete Product has no effect on the direction of Siam Cement i.e., Siam Cement and Chonburi Concrete go up and down completely randomly.
Pair Corralation between Siam Cement and Chonburi Concrete
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the Chonburi Concrete. But the stock apears to be less risky and, when comparing its historical volatility, The Siam Cement is 1.09 times less risky than Chonburi Concrete. The stock trades about -0.17 of its potential returns per unit of risk. The Chonburi Concrete Product is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 30.00 in Chonburi Concrete Product on August 29, 2024 and sell it today you would lose (1.00) from holding Chonburi Concrete Product or give up 3.33% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
The Siam Cement vs. Chonburi Concrete Product
Performance |
Timeline |
Siam Cement |
Chonburi Concrete Product |
Siam Cement and Chonburi Concrete Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siam Cement and Chonburi Concrete
The main advantage of trading using opposite Siam Cement and Chonburi Concrete positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Chonburi Concrete 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 Chonburi Concrete will offset losses from the drop in Chonburi Concrete's long position.Siam Cement vs. PTT Public | Siam Cement vs. PTT Exploration and | Siam Cement vs. CP ALL Public | Siam Cement vs. Kasikornbank Public |
Chonburi Concrete vs. Dynasty Ceramic Public | Chonburi Concrete vs. Cal Comp Electronics Public | Chonburi Concrete vs. AP Public | Chonburi Concrete vs. Dcon Products 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
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |