Correlation Between Siri Prime and Central Pattana
Can any of the company-specific risk be diversified away by investing in both Siri Prime and Central Pattana 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 Siri Prime and Central Pattana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siri Prime Office and Central Pattana Public, you can compare the effects of market volatilities on Siri Prime and Central Pattana 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 Siri Prime with a short position of Central Pattana. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siri Prime and Central Pattana.
Diversification Opportunities for Siri Prime and Central Pattana
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siri and Central is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Siri Prime Office and Central Pattana Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Pattana Public and Siri Prime 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 Siri Prime Office are associated (or correlated) with Central Pattana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Pattana Public has no effect on the direction of Siri Prime i.e., Siri Prime and Central Pattana go up and down completely randomly.
Pair Corralation between Siri Prime and Central Pattana
Assuming the 90 days trading horizon Siri Prime Office is expected to generate 1.17 times more return on investment than Central Pattana. However, Siri Prime is 1.17 times more volatile than Central Pattana Public. It trades about 0.02 of its potential returns per unit of risk. Central Pattana Public is currently generating about 0.0 per unit of risk. If you would invest 170.00 in Siri Prime Office on August 28, 2024 and sell it today you would earn a total of 11.00 from holding Siri Prime Office or generate 6.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.71% |
| Values | Daily Returns |
Siri Prime Office vs. Central Pattana Public
Performance |
| Timeline |
| Siri Prime Office |
| Central Pattana Public |
Siri Prime and Central Pattana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siri Prime and Central Pattana
The main advantage of trading using opposite Siri Prime and Central Pattana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siri Prime position performs unexpectedly, Central Pattana 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 Central Pattana will offset losses from the drop in Central Pattana's long position.| Siri Prime vs. Land and Houses | Siri Prime vs. Quality Houses Public | Siri Prime vs. AP Public | Siri Prime vs. SCB X 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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