Correlation Between Siam City and Yong Concrete
Can any of the company-specific risk be diversified away by investing in both Siam City and Yong 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 City and Yong Concrete into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siam City Cement and Yong Concrete PCL, you can compare the effects of market volatilities on Siam City and Yong 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 City with a short position of Yong Concrete. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam City and Yong Concrete.
Diversification Opportunities for Siam City and Yong Concrete
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siam and Yong is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Siam City Cement and Yong Concrete PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yong Concrete PCL and Siam City 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 Siam City Cement are associated (or correlated) with Yong Concrete. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yong Concrete PCL has no effect on the direction of Siam City i.e., Siam City and Yong Concrete go up and down completely randomly.
Pair Corralation between Siam City and Yong Concrete
If you would invest (100.00) in Yong Concrete PCL on October 22, 2024 and sell it today you would earn a total of 100.00 from holding Yong Concrete PCL or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Siam City Cement vs. Yong Concrete PCL
Performance |
| Timeline |
| Siam City Cement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yong Concrete PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Siam City and Yong Concrete Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam City and Yong Concrete
The main advantage of trading using opposite Siam City and Yong Concrete positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam City position performs unexpectedly, Yong 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 Yong Concrete will offset losses from the drop in Yong Concrete's long position.| Siam City vs. The Siam Cement | Siam City vs. SCB X Public | Siam City vs. Bangkok Bank Public | Siam City vs. PTT Public |
| Yong Concrete vs. Exotic Food Public | Yong Concrete vs. North East Rubbers | Yong Concrete vs. Srinanaporn Marketing 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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