Correlation Between Siam Steel and Steel Public
Can any of the company-specific risk be diversified away by investing in both Siam Steel and Steel 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 Steel and Steel Public 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 The Steel Public, you can compare the effects of market volatilities on Siam Steel and Steel 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 Steel with a short position of Steel Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Steel and Steel Public.
Diversification Opportunities for Siam Steel and Steel Public
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siam and Steel is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Siam Steel Service and The Steel Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steel Public 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 Steel Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steel Public has no effect on the direction of Siam Steel i.e., Siam Steel and Steel Public go up and down completely randomly.
Pair Corralation between Siam Steel and Steel Public
Assuming the 90 days trading horizon Siam Steel Service is expected to generate 1.0 times more return on investment than Steel Public. However, Siam Steel Service is 1.0 times less risky than Steel Public. It trades about 0.06 of its potential returns per unit of risk. The Steel Public is currently generating about 0.06 per unit of risk. If you would invest 256.00 in Siam Steel Service on January 14, 2025 and sell it today you would lose (48.00) from holding Siam Steel Service or give up 18.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siam Steel Service vs. The Steel Public
Performance |
| Timeline |
| Siam Steel Service |
| Steel Public |
Siam Steel and Steel Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Steel and Steel Public
The main advantage of trading using opposite Siam Steel and Steel Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Steel position performs unexpectedly, Steel 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 Steel Public will offset losses from the drop in Steel Public'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 |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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