Correlation Between Siam Cement and International Paper
Can any of the company-specific risk be diversified away by investing in both Siam Cement and International Paper 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 International Paper 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 International Paper, you can compare the effects of market volatilities on Siam Cement and International Paper 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 International Paper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and International Paper.
Diversification Opportunities for Siam Cement and International Paper
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Siam and International is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and International Paper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Paper 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 International Paper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Paper has no effect on the direction of Siam Cement i.e., Siam Cement and International Paper go up and down completely randomly.
Pair Corralation between Siam Cement and International Paper
If you would invest 7,600 in International Paper on November 7, 2024 and sell it today you would earn a total of 0.00 from holding International Paper or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
The Siam Cement vs. International Paper
Performance |
| Timeline |
| Siam Cement |
| International Paper |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Siam Cement and International Paper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and International Paper
The main advantage of trading using opposite Siam Cement and International Paper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, International Paper 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 International Paper will offset losses from the drop in International Paper's long position.| Siam Cement vs. FTAI Infrastructure | Siam Cement vs. RCM Technologies | Siam Cement vs. NN Inc | Siam Cement vs. Tejon Ranch Co |
| International Paper vs. Marine Products | International Paper vs. Funko Inc | International Paper vs. Greentown Management Holdings | International Paper vs. SLR Investment Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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