Correlation Between Siam Cement and Chularat Hospital
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Chularat Hospital 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 Chularat Hospital 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 Chularat Hospital Public, you can compare the effects of market volatilities on Siam Cement and Chularat Hospital 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 Chularat Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Chularat Hospital.
Diversification Opportunities for Siam Cement and Chularat Hospital
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siam and Chularat is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Chularat Hospital Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chularat Hospital 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 Chularat Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chularat Hospital Public has no effect on the direction of Siam Cement i.e., Siam Cement and Chularat Hospital go up and down completely randomly.
Pair Corralation between Siam Cement and Chularat Hospital
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the Chularat Hospital. But the stock apears to be less risky and, when comparing its historical volatility, The Siam Cement is 1.25 times less risky than Chularat Hospital. The stock trades about -0.26 of its potential returns per unit of risk. The Chularat Hospital Public is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 278.00 in Chularat Hospital Public on August 31, 2024 and sell it today you would lose (20.00) from holding Chularat Hospital Public or give up 7.19% 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. Chularat Hospital Public
Performance |
| Timeline |
| Siam Cement |
| Chularat Hospital Public |
Siam Cement and Chularat Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and Chularat Hospital
The main advantage of trading using opposite Siam Cement and Chularat Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Chularat Hospital 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 Chularat Hospital will offset losses from the drop in Chularat Hospital's long position.| Siam Cement vs. Krung Thai Bank | Siam Cement vs. KTBST Mixed Leasehold | Siam Cement vs. Heng Leasing Capital | Siam Cement vs. WHA Industrial Leasehold |
| Chularat Hospital vs. AP Public | Chularat Hospital vs. Advanced Information Technology | Chularat Hospital vs. AJ Plast Public | Chularat Hospital vs. Berli Jucker 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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