Correlation Between SiamEast Solutions and Sirakorn PCL
Can any of the company-specific risk be diversified away by investing in both SiamEast Solutions and Sirakorn PCL 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 SiamEast Solutions and Sirakorn PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SiamEast Solutions Public and Sirakorn PCL, you can compare the effects of market volatilities on SiamEast Solutions and Sirakorn PCL 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 SiamEast Solutions with a short position of Sirakorn PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of SiamEast Solutions and Sirakorn PCL.
Diversification Opportunities for SiamEast Solutions and Sirakorn PCL
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SiamEast and Sirakorn is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding SiamEast Solutions Public and Sirakorn PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sirakorn PCL and SiamEast Solutions 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 SiamEast Solutions Public are associated (or correlated) with Sirakorn PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sirakorn PCL has no effect on the direction of SiamEast Solutions i.e., SiamEast Solutions and Sirakorn PCL go up and down completely randomly.
Pair Corralation between SiamEast Solutions and Sirakorn PCL
Assuming the 90 days horizon SiamEast Solutions Public is expected to under-perform the Sirakorn PCL. But the stock apears to be less risky and, when comparing its historical volatility, SiamEast Solutions Public is 1.6 times less risky than Sirakorn PCL. The stock trades about -0.4 of its potential returns per unit of risk. The Sirakorn PCL is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 71.00 in Sirakorn PCL on September 3, 2024 and sell it today you would lose (10.00) from holding Sirakorn PCL or give up 14.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SiamEast Solutions Public vs. Sirakorn PCL
Performance |
| Timeline |
| SiamEast Solutions Public |
| Sirakorn PCL |
SiamEast Solutions and Sirakorn PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SiamEast Solutions and Sirakorn PCL
The main advantage of trading using opposite SiamEast Solutions and Sirakorn PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SiamEast Solutions position performs unexpectedly, Sirakorn PCL 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 Sirakorn PCL will offset losses from the drop in Sirakorn PCL's long position.| SiamEast Solutions vs. Super Energy | SiamEast Solutions vs. WHA Public | SiamEast Solutions vs. Siri Prime Office | SiamEast Solutions vs. Ananda Development Public |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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