Correlation Between Siam Cement and Healthlead Public
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Healthlead 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 Healthlead 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 Healthlead Public, you can compare the effects of market volatilities on Siam Cement and Healthlead 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 Healthlead Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Healthlead Public.
Diversification Opportunities for Siam Cement and Healthlead Public
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siam and Healthlead is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Healthlead Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthlead 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 Healthlead Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthlead Public has no effect on the direction of Siam Cement i.e., Siam Cement and Healthlead Public go up and down completely randomly.
Pair Corralation between Siam Cement and Healthlead Public
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the Healthlead Public. In addition to that, Siam Cement is 1.38 times more volatile than Healthlead Public. It trades about -0.35 of its total potential returns per unit of risk. Healthlead Public is currently generating about 0.35 per unit of volatility. If you would invest 805.00 in Healthlead Public on September 2, 2024 and sell it today you would earn a total of 75.00 from holding Healthlead Public or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Cement vs. Healthlead Public
Performance |
| Timeline |
| Siam Cement |
| Healthlead Public |
Siam Cement and Healthlead Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and Healthlead Public
The main advantage of trading using opposite Siam Cement and Healthlead Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Healthlead 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 Healthlead Public will offset losses from the drop in Healthlead Public's long position.| Siam Cement vs. Healthlead Public | Siam Cement vs. Information and Communication | Siam Cement vs. Copperwired Public | Siam Cement vs. Turnkey Communication Services |
| Healthlead Public vs. II Group Public | Healthlead Public vs. Dohome Public | Healthlead Public vs. Humanica Public | Healthlead Public vs. Jay Mart 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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