Correlation Between Siam Wellness and BPS TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Siam Wellness and BPS TECHNOLOGY 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 Wellness and BPS TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siam Wellness Group and BPS TECHNOLOGY PUBLIC, you can compare the effects of market volatilities on Siam Wellness and BPS TECHNOLOGY 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 Wellness with a short position of BPS TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Wellness and BPS TECHNOLOGY.
Diversification Opportunities for Siam Wellness and BPS TECHNOLOGY
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siam and BPS is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Siam Wellness Group and BPS TECHNOLOGY PUBLIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPS TECHNOLOGY PUBLIC and Siam Wellness 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 Wellness Group are associated (or correlated) with BPS TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPS TECHNOLOGY PUBLIC has no effect on the direction of Siam Wellness i.e., Siam Wellness and BPS TECHNOLOGY go up and down completely randomly.
Pair Corralation between Siam Wellness and BPS TECHNOLOGY
Assuming the 90 days trading horizon Siam Wellness Group is expected to generate 0.76 times more return on investment than BPS TECHNOLOGY. However, Siam Wellness Group is 1.32 times less risky than BPS TECHNOLOGY. It trades about 0.15 of its potential returns per unit of risk. BPS TECHNOLOGY PUBLIC is currently generating about -0.19 per unit of risk. If you would invest 660.00 in Siam Wellness Group on September 3, 2024 and sell it today you would earn a total of 60.00 from holding Siam Wellness Group or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siam Wellness Group vs. BPS TECHNOLOGY PUBLIC
Performance |
| Timeline |
| Siam Wellness Group |
| BPS TECHNOLOGY PUBLIC |
Siam Wellness and BPS TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Wellness and BPS TECHNOLOGY
The main advantage of trading using opposite Siam Wellness and BPS TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Wellness position performs unexpectedly, BPS TECHNOLOGY 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 BPS TECHNOLOGY will offset losses from the drop in BPS TECHNOLOGY's long position.| Siam Wellness vs. Minor International Public | Siam Wellness vs. Central Plaza Hotel | Siam Wellness vs. The Erawan Group | Siam Wellness vs. After You Public |
| BPS TECHNOLOGY vs. Delta Electronics Public | BPS TECHNOLOGY vs. Delta Electronics Public | BPS TECHNOLOGY vs. Airports of Thailand | BPS TECHNOLOGY 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |