Correlation Between Siam Cement and Land
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Land 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 Land 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 Land and Houses, you can compare the effects of market volatilities on Siam Cement and Land 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 Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Land.
Diversification Opportunities for Siam Cement and Land
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siam and Land is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Land and Houses in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Land and Houses 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 Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Land and Houses has no effect on the direction of Siam Cement i.e., Siam Cement and Land go up and down completely randomly.
Pair Corralation between Siam Cement and Land
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the Land. In addition to that, Siam Cement is 1.41 times more volatile than Land and Houses. It trades about -0.17 of its total potential returns per unit of risk. Land and Houses is currently generating about -0.24 per unit of volatility. If you would invest 500.00 in Land and Houses on November 3, 2024 and sell it today you would lose (40.00) from holding Land and Houses or give up 8.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Cement vs. Land and Houses
Performance |
| Timeline |
| Siam Cement |
| Land and Houses |
Siam Cement and Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and Land
The main advantage of trading using opposite Siam Cement and Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Land 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 Land will offset losses from the drop in Land's long position.| Siam Cement vs. Sun Vending Technology | Siam Cement vs. Plan B Media | Siam Cement vs. Thonburi Medical Centre | Siam Cement vs. Ekachai Medical Care |
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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