Correlation Between Siam Cement and Delta Electronics
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Delta Electronics 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 Delta Electronics 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 Delta Electronics Public, you can compare the effects of market volatilities on Siam Cement and Delta Electronics 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 Delta Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Delta Electronics.
Diversification Opportunities for Siam Cement and Delta Electronics
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Siam and Delta is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Delta Electronics Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Electronics 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 Delta Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Electronics Public has no effect on the direction of Siam Cement i.e., Siam Cement and Delta Electronics go up and down completely randomly.
Pair Corralation between Siam Cement and Delta Electronics
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the Delta Electronics. But the stock apears to be less risky and, when comparing its historical volatility, The Siam Cement is 2.6 times less risky than Delta Electronics. The stock trades about -0.07 of its potential returns per unit of risk. The Delta Electronics Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7,320 in Delta Electronics Public on August 24, 2024 and sell it today you would earn a total of 7,280 from holding Delta Electronics Public or generate 99.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Cement vs. Delta Electronics Public
Performance |
| Timeline |
| Siam Cement |
| Delta Electronics Public |
Siam Cement and Delta Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and Delta Electronics
The main advantage of trading using opposite Siam Cement and Delta Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Delta Electronics 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 Delta Electronics will offset losses from the drop in Delta Electronics' long position.| Siam Cement vs. PTT Public | Siam Cement vs. PTT Exploration and | Siam Cement vs. CP ALL Public | Siam Cement vs. Kasikornbank Public |
| Delta Electronics vs. AP Public | Delta Electronics vs. Jasmine International Public | Delta Electronics vs. Asia Plus Group | Delta Electronics vs. Bangkok Aviation Fuel |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |