Correlation Between Siam Wellness and News Network
Can any of the company-specific risk be diversified away by investing in both Siam Wellness and News Network 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 News Network 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 News Network, you can compare the effects of market volatilities on Siam Wellness and News Network 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 News Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Wellness and News Network.
Diversification Opportunities for Siam Wellness and News Network
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siam and News is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Siam Wellness Group and News Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on News Network 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 News Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of News Network has no effect on the direction of Siam Wellness i.e., Siam Wellness and News Network go up and down completely randomly.
Pair Corralation between Siam Wellness and News Network
Assuming the 90 days trading horizon Siam Wellness is expected to generate 521.86 times less return on investment than News Network. But when comparing it to its historical volatility, Siam Wellness Group is 35.34 times less risky than News Network. It trades about 0.01 of its potential returns per unit of risk. News Network is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2.00 in News Network on August 31, 2024 and sell it today you would lose (1.00) from holding News Network or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Siam Wellness Group vs. News Network
Performance |
| Timeline |
| Siam Wellness Group |
| News Network |
Siam Wellness and News Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Wellness and News Network
The main advantage of trading using opposite Siam Wellness and News Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Wellness position performs unexpectedly, News Network 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 News Network will offset losses from the drop in News Network'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 |
| News Network vs. Internet Thailand Public | News Network vs. Millcon Steel Public | News Network vs. Hydrotek Public | News Network vs. E for L |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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