Correlation Between Siam Wellness and SC Asset
Can any of the company-specific risk be diversified away by investing in both Siam Wellness and SC Asset 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 SC Asset 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 SC Asset, you can compare the effects of market volatilities on Siam Wellness and SC Asset 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 SC Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Wellness and SC Asset.
Diversification Opportunities for Siam Wellness and SC Asset
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Siam and SC Asset is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Siam Wellness Group and SC Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SC Asset 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 SC Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SC Asset has no effect on the direction of Siam Wellness i.e., Siam Wellness and SC Asset go up and down completely randomly.
Pair Corralation between Siam Wellness and SC Asset
Assuming the 90 days trading horizon Siam Wellness is expected to generate 167.47 times less return on investment than SC Asset. But when comparing it to its historical volatility, Siam Wellness Group is 22.82 times less risky than SC Asset. It trades about 0.01 of its potential returns per unit of risk. SC Asset is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 365.00 in SC Asset on September 2, 2024 and sell it today you would lose (77.00) from holding SC Asset or give up 21.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siam Wellness Group vs. SC Asset
Performance |
| Timeline |
| Siam Wellness Group |
| SC Asset |
Siam Wellness and SC Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Wellness and SC Asset
The main advantage of trading using opposite Siam Wellness and SC Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Wellness position performs unexpectedly, SC Asset 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 SC Asset will offset losses from the drop in SC Asset'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 |
| SC Asset vs. PTT OIL RETAIL | SC Asset vs. Turnkey Communication Services | SC Asset vs. Lohakit Metal Public | SC Asset vs. SAF Special Steel |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |