Correlation Between Siam Cement and Origin Property
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Origin Property 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 Origin Property 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 Origin Property PCL, you can compare the effects of market volatilities on Siam Cement and Origin Property 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 Origin Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Origin Property.
Diversification Opportunities for Siam Cement and Origin Property
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siam and Origin is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Origin Property PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Property PCL 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 Origin Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Property PCL has no effect on the direction of Siam Cement i.e., Siam Cement and Origin Property go up and down completely randomly.
Pair Corralation between Siam Cement and Origin Property
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the Origin Property. In addition to that, Siam Cement is 1.41 times more volatile than Origin Property PCL. It trades about -0.36 of its total potential returns per unit of risk. Origin Property PCL is currently generating about -0.29 per unit of volatility. If you would invest 424.00 in Origin Property PCL on September 13, 2024 and sell it today you would lose (32.00) from holding Origin Property PCL or give up 7.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
The Siam Cement vs. Origin Property PCL
Performance |
| Timeline |
| Siam Cement |
| Origin Property PCL |
Siam Cement and Origin Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and Origin Property
The main advantage of trading using opposite Siam Cement and Origin Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Origin Property 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 Origin Property will offset losses from the drop in Origin Property's long position.| Siam Cement vs. Thantawan Industry Public | Siam Cement vs. The Erawan Group | Siam Cement vs. Jay Mart Public | Siam Cement vs. Airports of Thailand |
| Origin Property vs. AP Public | Origin Property vs. Land and Houses | Origin Property vs. WHA Public | Origin Property vs. Quality Houses 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
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |