Correlation Between Siam Wellness and Prodigy Public
Can any of the company-specific risk be diversified away by investing in both Siam Wellness and Prodigy 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 Prodigy 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 Prodigy Public, you can compare the effects of market volatilities on Siam Wellness and Prodigy 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 Prodigy Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Wellness and Prodigy Public.
Diversification Opportunities for Siam Wellness and Prodigy Public
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Siam and Prodigy is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Siam Wellness Group and Prodigy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prodigy 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 Prodigy Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prodigy Public has no effect on the direction of Siam Wellness i.e., Siam Wellness and Prodigy Public go up and down completely randomly.
Pair Corralation between Siam Wellness and Prodigy Public
Assuming the 90 days trading horizon Siam Wellness Group is expected to generate 2.21 times more return on investment than Prodigy Public. However, Siam Wellness is 2.21 times more volatile than Prodigy Public. It trades about 0.15 of its potential returns per unit of risk. Prodigy Public is currently generating about 0.01 per unit of risk. If you would invest 660.00 in Siam Wellness Group on September 1, 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 Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Siam Wellness Group vs. Prodigy Public
Performance |
| Timeline |
| Siam Wellness Group |
| Prodigy Public |
Siam Wellness and Prodigy Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Wellness and Prodigy Public
The main advantage of trading using opposite Siam Wellness and Prodigy Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Wellness position performs unexpectedly, Prodigy 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 Prodigy Public will offset losses from the drop in Prodigy 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 |
| Prodigy Public vs. Siam Wellness Group | Prodigy Public vs. Sun Vending Technology | Prodigy Public vs. Silicon Craft Technology | Prodigy Public vs. Turnkey Communication Services |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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