Correlation Between Siam Technic and Aqua Public
Can any of the company-specific risk be diversified away by investing in both Siam Technic and Aqua 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 Technic and Aqua Public 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 Aqua Public, you can compare the effects of market volatilities on Siam Technic and Aqua 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 Technic with a short position of Aqua Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Technic and Aqua Public.
Diversification Opportunities for Siam Technic and Aqua Public
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siam and Aqua is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Siam Technic Concrete and Aqua Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aqua Public 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 Aqua Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aqua Public has no effect on the direction of Siam Technic i.e., Siam Technic and Aqua Public go up and down completely randomly.
Pair Corralation between Siam Technic and Aqua Public
Assuming the 90 days trading horizon Siam Technic Concrete is expected to generate 1.15 times more return on investment than Aqua Public. However, Siam Technic is 1.15 times more volatile than Aqua Public. It trades about 0.01 of its potential returns per unit of risk. Aqua Public is currently generating about -0.11 per unit of risk. If you would invest 113.00 in Siam Technic Concrete on September 5, 2024 and sell it today you would earn a total of 0.00 from holding Siam Technic Concrete or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Siam Technic Concrete vs. Aqua Public
Performance |
| Timeline |
| Siam Technic Concrete |
| Aqua Public |
Siam Technic and Aqua Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Technic and Aqua Public
The main advantage of trading using opposite Siam Technic and Aqua Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Technic position performs unexpectedly, Aqua 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 Aqua Public will offset losses from the drop in Aqua Public's long position.| Siam Technic vs. Aqua Public | Siam Technic vs. Union Auction Public | Siam Technic vs. Ama Marine Public | Siam Technic vs. Akkhie Prakarn 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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