Correlation Between Siam Cement and Samart Public
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Samart 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 Samart 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 Samart Public, you can compare the effects of market volatilities on Siam Cement and Samart 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 Samart Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Samart Public.
Diversification Opportunities for Siam Cement and Samart Public
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Siam and Samart is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Samart Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samart 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 Samart Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samart Public has no effect on the direction of Siam Cement i.e., Siam Cement and Samart Public go up and down completely randomly.
Pair Corralation between Siam Cement and Samart Public
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the Samart Public. But the stock apears to be less risky and, when comparing its historical volatility, The Siam Cement is 1.35 times less risky than Samart Public. The stock trades about -0.29 of its potential returns per unit of risk. The Samart Public is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 720.00 in Samart Public on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Samart Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Cement vs. Samart Public
Performance |
| Timeline |
| Siam Cement |
| Samart Public |
Siam Cement and Samart Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and Samart Public
The main advantage of trading using opposite Siam Cement and Samart Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Samart 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 Samart Public will offset losses from the drop in Samart Public's long position.| Siam Cement vs. AAPICO Hitech Public | Siam Cement vs. Siam Technic Concrete | Siam Cement vs. Silicon Craft Technology | Siam Cement vs. Peerapat Technology Public |
| Samart Public vs. KCE Electronics Public | Samart Public vs. Land and Houses | Samart Public vs. Delta Electronics Public | Samart Public vs. The Siam Cement |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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