Correlation Between Siri Prime and Thai Reinsurance
Can any of the company-specific risk be diversified away by investing in both Siri Prime and Thai Reinsurance 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 Thai Reinsurance 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 Thai Reinsurance Public, you can compare the effects of market volatilities on Siri Prime and Thai Reinsurance 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 Thai Reinsurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siri Prime and Thai Reinsurance.
Diversification Opportunities for Siri Prime and Thai Reinsurance
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siri and Thai is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Siri Prime Office and Thai Reinsurance Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Reinsurance 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 Thai Reinsurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Reinsurance Public has no effect on the direction of Siri Prime i.e., Siri Prime and Thai Reinsurance go up and down completely randomly.
Pair Corralation between Siri Prime and Thai Reinsurance
Assuming the 90 days trading horizon Siri Prime is expected to generate 48.74 times less return on investment than Thai Reinsurance. But when comparing it to its historical volatility, Siri Prime Office is 52.86 times less risky than Thai Reinsurance. It trades about 0.09 of its potential returns per unit of risk. Thai Reinsurance Public is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 73.00 in Thai Reinsurance Public on August 29, 2024 and sell it today you would lose (16.00) from holding Thai Reinsurance Public or give up 21.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siri Prime Office vs. Thai Reinsurance Public
Performance |
| Timeline |
| Siri Prime Office |
| Thai Reinsurance Public |
Siri Prime and Thai Reinsurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siri Prime and Thai Reinsurance
The main advantage of trading using opposite Siri Prime and Thai Reinsurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siri Prime position performs unexpectedly, Thai Reinsurance 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 Thai Reinsurance will offset losses from the drop in Thai Reinsurance's long position.| Siri Prime vs. Eastern Star Real | Siri Prime vs. Ananda Development Public | Siri Prime vs. Better World Green | Siri Prime vs. Dcon Products Public |
| Thai Reinsurance vs. Thaire Life Assurance | Thai Reinsurance vs. Hana Microelectronics Public | Thai Reinsurance vs. Ratchthani Leasing Public | Thai Reinsurance vs. Siri Prime Office |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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