Correlation Between Siam Cement and SITE Centers
Can any of the company-specific risk be diversified away by investing in both Siam Cement and SITE Centers 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 SITE Centers 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 SITE Centers Corp, you can compare the effects of market volatilities on Siam Cement and SITE Centers 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 SITE Centers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and SITE Centers.
Diversification Opportunities for Siam Cement and SITE Centers
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siam and SITE is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and SITE Centers Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SITE Centers Corp 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 SITE Centers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SITE Centers Corp has no effect on the direction of Siam Cement i.e., Siam Cement and SITE Centers go up and down completely randomly.
Pair Corralation between Siam Cement and SITE Centers
Assuming the 90 days horizon The Siam Cement is expected to under-perform the SITE Centers. In addition to that, Siam Cement is 2.38 times more volatile than SITE Centers Corp. It trades about -0.01 of its total potential returns per unit of risk. SITE Centers Corp is currently generating about 0.04 per unit of volatility. If you would invest 2,310 in SITE Centers Corp on September 5, 2024 and sell it today you would earn a total of 206.00 from holding SITE Centers Corp or generate 8.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 82.3% |
| Values | Daily Returns |
The Siam Cement vs. SITE Centers Corp
Performance |
| Timeline |
| Siam Cement |
| SITE Centers Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Siam Cement and SITE Centers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and SITE Centers
The main advantage of trading using opposite Siam Cement and SITE Centers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, SITE Centers 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 SITE Centers will offset losses from the drop in SITE Centers' long position.| Siam Cement vs. EDP Energias de | Siam Cement vs. EDP Renovaveis | Siam Cement vs. Endesa SA ADR | Siam Cement vs. Enel SpA |
| SITE Centers vs. The Gabelli Multimedia | SITE Centers vs. The Gabelli Equity | SITE Centers vs. Virtus AllianzGI Convertible | SITE Centers vs. John Hancock Income |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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