Correlation Between Sun Country and Siam Makro
Can any of the company-specific risk be diversified away by investing in both Sun Country and Siam Makro 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 Sun Country and Siam Makro into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sun Country Airlines and Siam Makro PCL, you can compare the effects of market volatilities on Sun Country and Siam Makro 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 Sun Country with a short position of Siam Makro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sun Country and Siam Makro.
Diversification Opportunities for Sun Country and Siam Makro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sun and Siam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sun Country Airlines and Siam Makro PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Makro PCL and Sun Country 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 Sun Country Airlines are associated (or correlated) with Siam Makro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Makro PCL has no effect on the direction of Sun Country i.e., Sun Country and Siam Makro go up and down completely randomly.
Pair Corralation between Sun Country and Siam Makro
Given the investment horizon of 90 days Sun Country Airlines is expected to under-perform the Siam Makro. In addition to that, Sun Country is 8.06 times more volatile than Siam Makro PCL. It trades about 0.0 of its total potential returns per unit of risk. Siam Makro PCL is currently generating about 0.05 per unit of volatility. If you would invest 100.00 in Siam Makro PCL on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Siam Makro PCL or generate 6.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 57.46% |
| Values | Daily Returns |
Sun Country Airlines vs. Siam Makro PCL
Performance |
| Timeline |
| Sun Country Airlines |
| Siam Makro PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sun Country and Siam Makro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sun Country and Siam Makro
The main advantage of trading using opposite Sun Country and Siam Makro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sun Country position performs unexpectedly, Siam Makro 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 Makro will offset losses from the drop in Siam Makro's long position.| Sun Country vs. Canadian Pacific Railway | Sun Country vs. Werner Enterprises | Sun Country vs. Canadian National Railway | Sun Country vs. CSX Corporation |
| Siam Makro vs. TFI International | Siam Makro vs. Sun Country Airlines | Siam Makro vs. Haverty Furniture Companies | Siam Makro vs. Afya |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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