Correlation Between Siam Wellness and Healthlead Public
Can any of the company-specific risk be diversified away by investing in both Siam Wellness and Healthlead Public 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 Healthlead Public 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 Healthlead Public, you can compare the effects of market volatilities on Siam Wellness and Healthlead Public 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 Healthlead Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Wellness and Healthlead Public.
Diversification Opportunities for Siam Wellness and Healthlead Public
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siam and Healthlead is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Siam Wellness Group and Healthlead Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthlead 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 Healthlead Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthlead Public has no effect on the direction of Siam Wellness i.e., Siam Wellness and Healthlead Public go up and down completely randomly.
Pair Corralation between Siam Wellness and Healthlead Public
Assuming the 90 days trading horizon Siam Wellness Group is expected to generate 0.87 times more return on investment than Healthlead Public. However, Siam Wellness Group is 1.15 times less risky than Healthlead Public. It trades about 0.01 of its potential returns per unit of risk. Healthlead Public is currently generating about -0.06 per unit of risk. If you would invest 719.00 in Siam Wellness Group on August 31, 2024 and sell it today you would earn a total of 1.00 from holding Siam Wellness Group or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Siam Wellness Group vs. Healthlead Public
Performance |
| Timeline |
| Siam Wellness Group |
| Healthlead Public |
Siam Wellness and Healthlead Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Wellness and Healthlead Public
The main advantage of trading using opposite Siam Wellness and Healthlead Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Wellness position performs unexpectedly, Healthlead Public 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 Healthlead Public will offset losses from the drop in Healthlead Public'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 |
| Healthlead Public vs. Dohome Public | Healthlead Public vs. Humanica Public | Healthlead Public vs. Jay Mart Public | Healthlead Public vs. Siam Global House |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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