Correlation Between Siam Wellness and JD Food
Can any of the company-specific risk be diversified away by investing in both Siam Wellness and JD Food 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 JD Food 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 JD Food PCL, you can compare the effects of market volatilities on Siam Wellness and JD Food 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 JD Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Wellness and JD Food.
Diversification Opportunities for Siam Wellness and JD Food
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siam and JDF is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Siam Wellness Group and JD Food PCL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Food PCL 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 JD Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Food PCL has no effect on the direction of Siam Wellness i.e., Siam Wellness and JD Food go up and down completely randomly.
Pair Corralation between Siam Wellness and JD Food
Assuming the 90 days trading horizon Siam Wellness Group is expected to generate 1.09 times more return on investment than JD Food. However, Siam Wellness is 1.09 times more volatile than JD Food PCL. It trades about -0.02 of its potential returns per unit of risk. JD Food PCL is currently generating about -0.09 per unit of risk. If you would invest 785.00 in Siam Wellness Group on September 3, 2024 and sell it today you would lose (65.00) from holding Siam Wellness Group or give up 8.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siam Wellness Group vs. JD Food PCL
Performance |
| Timeline |
| Siam Wellness Group |
| JD Food PCL |
Siam Wellness and JD Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Wellness and JD Food
The main advantage of trading using opposite Siam Wellness and JD Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Wellness position performs unexpectedly, JD Food 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 JD Food will offset losses from the drop in JD Food'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 |
| JD Food vs. Nova Organic PCL | JD Food vs. TISCO Financial Group | JD Food vs. Thai Coating Industrial | JD Food vs. Central Retail |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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