Correlation Between Siam Cement and Southern Concrete
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Southern Concrete 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 Southern Concrete 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 Southern Concrete Pile, you can compare the effects of market volatilities on Siam Cement and Southern Concrete 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 Southern Concrete. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Southern Concrete.
Diversification Opportunities for Siam Cement and Southern Concrete
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siam and Southern is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Southern Concrete Pile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Concrete Pile 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 Southern Concrete. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Concrete Pile has no effect on the direction of Siam Cement i.e., Siam Cement and Southern Concrete go up and down completely randomly.
Pair Corralation between Siam Cement and Southern Concrete
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the Southern Concrete. But the stock apears to be less risky and, when comparing its historical volatility, The Siam Cement is 49.5 times less risky than Southern Concrete. The stock trades about -0.1 of its potential returns per unit of risk. The Southern Concrete Pile is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 680.00 in Southern Concrete Pile on September 3, 2024 and sell it today you would lose (5.00) from holding Southern Concrete Pile or give up 0.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Cement vs. Southern Concrete Pile
Performance |
| Timeline |
| Siam Cement |
| Southern Concrete Pile |
Siam Cement and Southern Concrete Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and Southern Concrete
The main advantage of trading using opposite Siam Cement and Southern Concrete positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Southern Concrete 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 Southern Concrete will offset losses from the drop in Southern Concrete's long position.| Siam Cement vs. Rojana Industrial Park | Siam Cement vs. CPR Gomu Industrial | Siam Cement vs. BPS TECHNOLOGY PUBLIC | Siam Cement vs. 2S Metal Public |
| Southern Concrete vs. PTT Public | Southern Concrete vs. PTT Exploration and | Southern Concrete vs. The Siam Cement | Southern Concrete vs. CP ALL 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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