Correlation Between Silicon Craft and Sirakorn PCL
Can any of the company-specific risk be diversified away by investing in both Silicon Craft 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 Silicon Craft and Sirakorn PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silicon Craft Technology and Sirakorn PCL, you can compare the effects of market volatilities on Silicon Craft 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 Silicon Craft with a short position of Sirakorn PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silicon Craft and Sirakorn PCL.
Diversification Opportunities for Silicon Craft and Sirakorn PCL
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Silicon and Sirakorn is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Silicon Craft Technology and Sirakorn PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sirakorn PCL and Silicon Craft 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 Silicon Craft Technology 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 Silicon Craft i.e., Silicon Craft and Sirakorn PCL go up and down completely randomly.
Pair Corralation between Silicon Craft and Sirakorn PCL
Assuming the 90 days trading horizon Silicon Craft Technology is expected to under-perform the Sirakorn PCL. But the stock apears to be less risky and, when comparing its historical volatility, Silicon Craft Technology is 1.46 times less risky than Sirakorn PCL. The stock trades about -0.07 of its potential returns per unit of risk. The Sirakorn PCL is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 57.00 in Sirakorn PCL on September 4, 2024 and sell it today you would earn a total of 4.00 from holding Sirakorn PCL or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Silicon Craft Technology vs. Sirakorn PCL
Performance |
| Timeline |
| Silicon Craft Technology |
| Sirakorn PCL |
Silicon Craft and Sirakorn PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silicon Craft and Sirakorn PCL
The main advantage of trading using opposite Silicon Craft and Sirakorn PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silicon Craft 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.| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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