Correlation Between Siam Cement and Olympic Steel
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Olympic Steel 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 Olympic Steel 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 Olympic Steel, you can compare the effects of market volatilities on Siam Cement and Olympic Steel 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 Olympic Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Olympic Steel.
Diversification Opportunities for Siam Cement and Olympic Steel
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Siam and Olympic is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Olympic Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Olympic Steel 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 Olympic Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Olympic Steel has no effect on the direction of Siam Cement i.e., Siam Cement and Olympic Steel go up and down completely randomly.
Pair Corralation between Siam Cement and Olympic Steel
If you would invest 640.00 in The Siam Cement on October 20, 2024 and sell it today you would earn a total of 0.00 from holding The Siam Cement or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
The Siam Cement vs. Olympic Steel
Performance |
| Timeline |
| Siam Cement |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Olympic Steel |
Siam Cement and Olympic Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Cement and Olympic Steel
The main advantage of trading using opposite Siam Cement and Olympic Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Olympic Steel 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 Olympic Steel will offset losses from the drop in Olympic Steel's long position.| Siam Cement vs. Chart Industries | Siam Cement vs. Gatos Silver | Siam Cement vs. Everus Construction Group | Siam Cement vs. Summit Materials |
| Olympic Steel vs. Universal Stainless Alloy | Olympic Steel vs. Outokumpu Oyj ADR | Olympic Steel vs. Usinas Siderurgicas de | Olympic Steel vs. POSCO Holdings |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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