Correlation Between Sahamitr Pressure and Siam Steel
Can any of the company-specific risk be diversified away by investing in both Sahamitr Pressure and Siam Steel 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 Sahamitr Pressure and Siam Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sahamitr Pressure Container and Siam Steel Service, you can compare the effects of market volatilities on Sahamitr Pressure and Siam Steel 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 Sahamitr Pressure with a short position of Siam Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sahamitr Pressure and Siam Steel.
Diversification Opportunities for Sahamitr Pressure and Siam Steel
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sahamitr and Siam is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sahamitr Pressure Container and Siam Steel Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Steel Service and Sahamitr Pressure 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 Sahamitr Pressure Container are associated (or correlated) with Siam Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Steel Service has no effect on the direction of Sahamitr Pressure i.e., Sahamitr Pressure and Siam Steel go up and down completely randomly.
Pair Corralation between Sahamitr Pressure and Siam Steel
Assuming the 90 days trading horizon Sahamitr Pressure Container is expected to generate 1.0 times more return on investment than Siam Steel. However, Sahamitr Pressure Container is 1.0 times less risky than Siam Steel. It trades about 0.08 of its potential returns per unit of risk. Siam Steel Service is currently generating about 0.08 per unit of risk. If you would invest 883.00 in Sahamitr Pressure Container on September 12, 2024 and sell it today you would earn a total of 37.00 from holding Sahamitr Pressure Container or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sahamitr Pressure Container vs. Siam Steel Service
Performance |
| Timeline |
| Sahamitr Pressure |
| Siam Steel Service |
Sahamitr Pressure and Siam Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sahamitr Pressure and Siam Steel
The main advantage of trading using opposite Sahamitr Pressure and Siam Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sahamitr Pressure position performs unexpectedly, Siam Steel 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 Steel will offset losses from the drop in Siam Steel's long position.| Sahamitr Pressure vs. Haad Thip Public | Sahamitr Pressure vs. MCS Steel Public | Sahamitr Pressure vs. Somboon Advance Technology | Sahamitr Pressure vs. Regional Container Lines |
| Siam Steel vs. Thantawan Industry Public | Siam Steel vs. The Erawan Group | Siam Steel vs. Jay Mart Public | Siam Steel vs. Airports of Thailand |
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 CEOs Directory module to screen CEOs from public companies around the world.
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