Correlation Between Siam Makro and Eastern
Can any of the company-specific risk be diversified away by investing in both Siam Makro and Eastern 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 Siam Makro and Eastern into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siam Makro PCL and Eastern Co, you can compare the effects of market volatilities on Siam Makro and Eastern 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 Siam Makro with a short position of Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Makro and Eastern.
Diversification Opportunities for Siam Makro and Eastern
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Siam and Eastern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Siam Makro PCL and Eastern Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern and Siam Makro 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 Siam Makro PCL are associated (or correlated) with Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern has no effect on the direction of Siam Makro i.e., Siam Makro and Eastern go up and down completely randomly.
Pair Corralation between Siam Makro and Eastern
Assuming the 90 days horizon Siam Makro is expected to generate 5.7 times less return on investment than Eastern. But when comparing it to its historical volatility, Siam Makro PCL is 7.63 times less risky than Eastern. It trades about 0.06 of its potential returns per unit of risk. Eastern Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,951 in Eastern Co on September 13, 2024 and sell it today you would earn a total of 946.00 from holding Eastern Co or generate 48.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 55.87% |
| Values | Daily Returns |
Siam Makro PCL vs. Eastern Co
Performance |
| Timeline |
| Siam Makro PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Eastern |
Siam Makro and Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Makro and Eastern
The main advantage of trading using opposite Siam Makro and Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Makro position performs unexpectedly, Eastern 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 Eastern will offset losses from the drop in Eastern's long position.| Siam Makro vs. Ryanair Holdings PLC | Siam Makro vs. Pentair PLC | Siam Makro vs. BCE Inc | Siam Makro vs. Westinghouse Air Brake |
| Eastern vs. Timken Company | Eastern vs. Lincoln Electric Holdings | Eastern vs. Hillman Solutions Corp | Eastern vs. AB SKF |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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