Correlation Between SiamEast Solutions and WHA Public
Can any of the company-specific risk be diversified away by investing in both SiamEast Solutions and WHA Public 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 WHA Public 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 WHA Public, you can compare the effects of market volatilities on SiamEast Solutions and WHA Public 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 WHA Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of SiamEast Solutions and WHA Public.
Diversification Opportunities for SiamEast Solutions and WHA Public
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between SiamEast and WHA is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding SiamEast Solutions Public and WHA Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WHA Public 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 WHA Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WHA Public has no effect on the direction of SiamEast Solutions i.e., SiamEast Solutions and WHA Public go up and down completely randomly.
Pair Corralation between SiamEast Solutions and WHA Public
Assuming the 90 days horizon SiamEast Solutions Public is expected to generate 26.48 times more return on investment than WHA Public. However, SiamEast Solutions is 26.48 times more volatile than WHA Public. It trades about 0.04 of its potential returns per unit of risk. WHA Public is currently generating about 0.07 per unit of risk. If you would invest 116.00 in SiamEast Solutions Public on September 12, 2024 and sell it today you would lose (58.00) from holding SiamEast Solutions Public or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SiamEast Solutions Public vs. WHA Public
Performance |
| Timeline |
| SiamEast Solutions Public |
| WHA Public |
SiamEast Solutions and WHA Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SiamEast Solutions and WHA Public
The main advantage of trading using opposite SiamEast Solutions and WHA Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SiamEast Solutions position performs unexpectedly, WHA Public 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 WHA Public will offset losses from the drop in WHA Public's long position.| SiamEast Solutions vs. Sea Oil Public | SiamEast Solutions vs. SGF Capital Public | SiamEast Solutions vs. Project Planning Service | SiamEast Solutions vs. Panjawattana Plastic 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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