Correlation Between Siam Cement and Siam Pan
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Siam Pan 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 Siam Pan 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 Siam Pan Group, you can compare the effects of market volatilities on Siam Cement and Siam Pan 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 Siam Pan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Siam Pan.
Diversification Opportunities for Siam Cement and Siam Pan
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siam and Siam is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Siam Pan Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Pan Group 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 Siam Pan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Pan Group has no effect on the direction of Siam Cement i.e., Siam Cement and Siam Pan go up and down completely randomly.
Pair Corralation between Siam Cement and Siam Pan
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the Siam Pan. In addition to that, Siam Cement is 2.52 times more volatile than Siam Pan Group. It trades about -0.39 of its total potential returns per unit of risk. Siam Pan Group is currently generating about -0.32 per unit of volatility. If you would invest 1,420 in Siam Pan Group on September 4, 2024 and sell it today you would lose (60.00) from holding Siam Pan Group or give up 4.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Siam Cement vs. Siam Pan Group
Performance |
| Timeline |
| Siam Cement |
| Siam Pan Group |
Siam Cement and Siam Pan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and Siam Pan
The main advantage of trading using opposite Siam Cement and Siam Pan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Siam Pan 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 Siam Pan will offset losses from the drop in Siam Pan's long position.| Siam Cement vs. Eastern Technical Engineering | Siam Cement vs. General Environmental Conservation | Siam Cement vs. Silicon Craft Technology | Siam Cement vs. NAT ABSOLUTE TECHNOLOGIES |
| Siam Pan vs. Sahamitr Pressure Container | Siam Pan vs. Siam Steel Service | Siam Pan vs. Thai Stanley Electric | Siam Pan vs. SP Syndicate 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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