Correlation Between Siam Wellness and Silicon Craft
Can any of the company-specific risk be diversified away by investing in both Siam Wellness and Silicon Craft 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 Silicon Craft 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 Silicon Craft Technology, you can compare the effects of market volatilities on Siam Wellness and Silicon Craft 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 Silicon Craft. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Wellness and Silicon Craft.
Diversification Opportunities for Siam Wellness and Silicon Craft
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siam and Silicon is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Siam Wellness Group and Silicon Craft Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Craft Technology 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 Silicon Craft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Craft Technology has no effect on the direction of Siam Wellness i.e., Siam Wellness and Silicon Craft go up and down completely randomly.
Pair Corralation between Siam Wellness and Silicon Craft
Assuming the 90 days trading horizon Siam Wellness Group is expected to generate 0.7 times more return on investment than Silicon Craft. However, Siam Wellness Group is 1.42 times less risky than Silicon Craft. It trades about 0.15 of its potential returns per unit of risk. Silicon Craft Technology is currently generating about -0.29 per unit of risk. If you would invest 660.00 in Siam Wellness Group on September 3, 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siam Wellness Group vs. Silicon Craft Technology
Performance |
| Timeline |
| Siam Wellness Group |
| Silicon Craft Technology |
Siam Wellness and Silicon Craft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Wellness and Silicon Craft
The main advantage of trading using opposite Siam Wellness and Silicon Craft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Wellness position performs unexpectedly, Silicon Craft 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 Silicon Craft will offset losses from the drop in Silicon Craft'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 |
| Silicon Craft vs. North East Rubbers | Silicon Craft vs. Mega Lifesciences Public | Silicon Craft vs. KCE Electronics Public | Silicon Craft vs. Singer Thailand Public |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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