Correlation Between Siam Cement and BBII
Can any of the company-specific risk be diversified away by investing in both Siam Cement and BBII 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 BBII 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 BBII, you can compare the effects of market volatilities on Siam Cement and BBII 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 BBII. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and BBII.
Diversification Opportunities for Siam Cement and BBII
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Siam and BBII is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and BBII in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBII 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 BBII. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBII has no effect on the direction of Siam Cement i.e., Siam Cement and BBII go up and down completely randomly.
Pair Corralation between Siam Cement and BBII
If you would invest 108.00 in BBII on August 31, 2024 and sell it today you would earn a total of 84.00 from holding BBII or generate 77.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Siam Cement vs. BBII
Performance |
| Timeline |
| Siam Cement |
| BBII |
Siam Cement and BBII Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and BBII
The main advantage of trading using opposite Siam Cement and BBII positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, BBII 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 BBII will offset losses from the drop in BBII's long position.| Siam Cement vs. FTAI Infrastructure | Siam Cement vs. RCM Technologies | Siam Cement vs. NN Inc | Siam Cement vs. Tejon Ranch Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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