Correlation Between Siam Steel and Sahamitr Pressure
Can any of the company-specific risk be diversified away by investing in both Siam Steel and Sahamitr Pressure 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 Sahamitr Pressure 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 Sahamitr Pressure Container, you can compare the effects of market volatilities on Siam Steel and Sahamitr Pressure 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 Sahamitr Pressure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Steel and Sahamitr Pressure.
Diversification Opportunities for Siam Steel and Sahamitr Pressure
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siam and Sahamitr is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Siam Steel Service and Sahamitr Pressure Container in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sahamitr Pressure 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 Sahamitr Pressure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sahamitr Pressure has no effect on the direction of Siam Steel i.e., Siam Steel and Sahamitr Pressure go up and down completely randomly.
Pair Corralation between Siam Steel and Sahamitr Pressure
Assuming the 90 days trading horizon Siam Steel is expected to generate 1.02 times less return on investment than Sahamitr Pressure. But when comparing it to its historical volatility, Siam Steel Service is 1.0 times less risky than Sahamitr Pressure. It trades about 0.06 of its potential returns per unit of risk. Sahamitr Pressure Container is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 975.00 in Sahamitr Pressure Container on September 4, 2024 and sell it today you would lose (35.00) from holding Sahamitr Pressure Container or give up 3.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siam Steel Service vs. Sahamitr Pressure Container
Performance |
| Timeline |
| Siam Steel Service |
| Sahamitr Pressure |
Siam Steel and Sahamitr Pressure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Steel and Sahamitr Pressure
The main advantage of trading using opposite Siam Steel and Sahamitr Pressure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Steel position performs unexpectedly, Sahamitr Pressure 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 Sahamitr Pressure will offset losses from the drop in Sahamitr Pressure'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 |
| Sahamitr Pressure vs. PTT Public | Sahamitr Pressure vs. PTT Exploration and | Sahamitr Pressure vs. The Siam Cement | Sahamitr Pressure vs. CP ALL 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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