Correlation Between SCG PACKAGING and Siam City
Can any of the company-specific risk be diversified away by investing in both SCG PACKAGING and Siam City 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 SCG PACKAGING and Siam City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCG PACKAGING PCL NVDR and Siam City Cement, you can compare the effects of market volatilities on SCG PACKAGING and Siam City 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 SCG PACKAGING with a short position of Siam City. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCG PACKAGING and Siam City.
Diversification Opportunities for SCG PACKAGING and Siam City
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SCG and Siam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SCG PACKAGING PCL NVDR and Siam City Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam City Cement and SCG PACKAGING 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 SCG PACKAGING PCL NVDR are associated (or correlated) with Siam City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam City Cement has no effect on the direction of SCG PACKAGING i.e., SCG PACKAGING and Siam City go up and down completely randomly.
Pair Corralation between SCG PACKAGING and Siam City
If you would invest (100.00) in Siam City Cement on September 12, 2024 and sell it today you would earn a total of 100.00 from holding Siam City Cement or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
SCG PACKAGING PCL NVDR vs. Siam City Cement
Performance |
| Timeline |
| SCG PACKAGING PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Siam City Cement |
SCG PACKAGING and Siam City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SCG PACKAGING and Siam City
The main advantage of trading using opposite SCG PACKAGING and Siam City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCG PACKAGING position performs unexpectedly, Siam City 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 City will offset losses from the drop in Siam City's long position.| SCG PACKAGING vs. PTT Public | SCG PACKAGING vs. Kasikornbank Public | SCG PACKAGING vs. The Siam Cement | SCG PACKAGING vs. OSOTSPA PCL NVDR |
| Siam City vs. SCG PACKAGING PCL NVDR | Siam City vs. The Siam Cement | Siam City vs. Kasikornbank Public | Siam City vs. PTT Exploration and |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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