Correlation Between Stock Exchange and Siam Cement
Can any of the company-specific risk be diversified away by investing in both Stock Exchange and Siam Cement 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 Stock Exchange and Siam Cement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stock Exchange Of and The Siam Cement, you can compare the effects of market volatilities on Stock Exchange and Siam Cement 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 Stock Exchange with a short position of Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stock Exchange and Siam Cement.
Diversification Opportunities for Stock Exchange and Siam Cement
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Stock and Siam is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Stock Exchange Of and The Siam Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Cement and Stock Exchange 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 Stock Exchange Of are associated (or correlated) with Siam Cement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Cement has no effect on the direction of Stock Exchange i.e., Stock Exchange and Siam Cement go up and down completely randomly.
Pair Corralation between Stock Exchange and Siam Cement
Assuming the 90 days trading horizon Stock Exchange Of is expected to generate 0.52 times more return on investment than Siam Cement. However, Stock Exchange Of is 1.94 times less risky than Siam Cement. It trades about -0.01 of its potential returns per unit of risk. The Siam Cement is currently generating about -0.1 per unit of risk. If you would invest 150,887 in Stock Exchange Of on August 28, 2024 and sell it today you would lose (6,556) from holding Stock Exchange Of or give up 4.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stock Exchange Of vs. The Siam Cement
Performance |
| Timeline |
Stock Exchange and Siam Cement Volatility Contrast
Predicted Return Density |
| Returns |
Stock Exchange Of
Pair trading matchups for Stock Exchange
The Siam Cement
Pair trading matchups for Siam Cement
Pair Trading with Stock Exchange and Siam Cement
The main advantage of trading using opposite Stock Exchange and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stock Exchange position performs unexpectedly, Siam Cement 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 Siam Cement will offset losses from the drop in Siam Cement's long position.| Stock Exchange vs. Turnkey Communication Services | Stock Exchange vs. Winnergy Medical Public | Stock Exchange vs. Charoen Pokphand Foods | Stock Exchange vs. Information and Communication |
| Siam Cement vs. PTT Public | Siam Cement vs. PTT Exploration and | Siam Cement vs. CP ALL Public | Siam Cement vs. Kasikornbank Public |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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