Correlation Between Siam Technic and Asia Medical
Can any of the company-specific risk be diversified away by investing in both Siam Technic and Asia Medical 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 Technic and Asia Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siam Technic Concrete and Asia Medical Agricultural, you can compare the effects of market volatilities on Siam Technic and Asia Medical 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 Technic with a short position of Asia Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Technic and Asia Medical.
Diversification Opportunities for Siam Technic and Asia Medical
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siam and Asia is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Siam Technic Concrete and Asia Medical Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Medical Agricultural and Siam Technic 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 Technic Concrete are associated (or correlated) with Asia Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Medical Agricultural has no effect on the direction of Siam Technic i.e., Siam Technic and Asia Medical go up and down completely randomly.
Pair Corralation between Siam Technic and Asia Medical
Assuming the 90 days trading horizon Siam Technic Concrete is expected to under-perform the Asia Medical. But the stock apears to be less risky and, when comparing its historical volatility, Siam Technic Concrete is 1.21 times less risky than Asia Medical. The stock trades about -0.02 of its potential returns per unit of risk. The Asia Medical Agricultural is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 134.00 in Asia Medical Agricultural on September 1, 2024 and sell it today you would earn a total of 8.00 from holding Asia Medical Agricultural or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siam Technic Concrete vs. Asia Medical Agricultural
Performance |
| Timeline |
| Siam Technic Concrete |
| Asia Medical Agricultural |
Siam Technic and Asia Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Technic and Asia Medical
The main advantage of trading using opposite Siam Technic and Asia Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Technic position performs unexpectedly, Asia Medical 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 Asia Medical will offset losses from the drop in Asia Medical's long position.| Siam Technic vs. Wave Entertainment Public | Siam Technic vs. Vibhavadi Medical Center | Siam Technic vs. TPI Polene Public | Siam Technic vs. Asia Green Energy |
| Asia Medical vs. The Klinique Med | Asia Medical vs. Exotic Food Public | Asia Medical vs. The Erawan Group | Asia Medical vs. Autocorp Holding 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories |