Correlation Between Siam Cement and Thai Packaging
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Thai Packaging 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 Thai Packaging 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 Thai Packaging Printing, you can compare the effects of market volatilities on Siam Cement and Thai Packaging 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 Thai Packaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Thai Packaging.
Diversification Opportunities for Siam Cement and Thai Packaging
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Siam and Thai is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Thai Packaging Printing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Packaging Printing 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 Thai Packaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Packaging Printing has no effect on the direction of Siam Cement i.e., Siam Cement and Thai Packaging go up and down completely randomly.
Pair Corralation between Siam Cement and Thai Packaging
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the Thai Packaging. But the stock apears to be less risky and, when comparing its historical volatility, The Siam Cement is 65.96 times less risky than Thai Packaging. The stock trades about -0.25 of its potential returns per unit of risk. The Thai Packaging Printing is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,300 in Thai Packaging Printing on September 12, 2024 and sell it today you would lose (50.00) from holding Thai Packaging Printing or give up 3.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Cement vs. Thai Packaging Printing
Performance |
| Timeline |
| Siam Cement |
| Thai Packaging Printing |
Siam Cement and Thai Packaging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and Thai Packaging
The main advantage of trading using opposite Siam Cement and Thai Packaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Thai Packaging 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 Thai Packaging will offset losses from the drop in Thai Packaging'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 |
| Thai Packaging vs. Thai Nam Plastic | Thai Packaging vs. Thantawan Industry Public | Thai Packaging vs. Thai Poly Acrylic | Thai Packaging vs. Thai Rung Union |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |