Correlation Between Siam Steel and Genesis Fertility
Can any of the company-specific risk be diversified away by investing in both Siam Steel and Genesis Fertility 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 Steel and Genesis Fertility into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siam Steel Service and Genesis Fertility Center, you can compare the effects of market volatilities on Siam Steel and Genesis Fertility 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 Steel with a short position of Genesis Fertility. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Steel and Genesis Fertility.
Diversification Opportunities for Siam Steel and Genesis Fertility
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siam and Genesis is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Siam Steel Service and Genesis Fertility Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genesis Fertility Center and Siam Steel 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 Steel Service are associated (or correlated) with Genesis Fertility. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genesis Fertility Center has no effect on the direction of Siam Steel i.e., Siam Steel and Genesis Fertility go up and down completely randomly.
Pair Corralation between Siam Steel and Genesis Fertility
Assuming the 90 days trading horizon Siam Steel Service is expected to generate 1.0 times more return on investment than Genesis Fertility. However, Siam Steel Service is 1.0 times less risky than Genesis Fertility. It trades about 0.06 of its potential returns per unit of risk. Genesis Fertility Center is currently generating about 0.06 per unit of risk. If you would invest 271.00 in Siam Steel Service on September 14, 2024 and sell it today you would lose (51.00) from holding Siam Steel Service or give up 18.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siam Steel Service vs. Genesis Fertility Center
Performance |
| Timeline |
| Siam Steel Service |
| Genesis Fertility Center |
Siam Steel and Genesis Fertility Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Steel and Genesis Fertility
The main advantage of trading using opposite Siam Steel and Genesis Fertility positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Steel position performs unexpectedly, Genesis Fertility 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 Genesis Fertility will offset losses from the drop in Genesis Fertility's long position.| Siam Steel vs. Thai Metal Drum | Siam Steel vs. Southern Concrete Pile | Siam Steel vs. STPI Public | Siam Steel vs. Saha Union Public |
| Genesis Fertility vs. Siam Steel Service | Genesis Fertility vs. Tata Steel Public | Genesis Fertility vs. Chiangmai Frozen Foods | Genesis Fertility vs. Bhiraj Office Leasehold |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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