Correlation Between Siam Technic and CK Power
Can any of the company-specific risk be diversified away by investing in both Siam Technic and CK Power 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 CK Power 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 CK Power Public, you can compare the effects of market volatilities on Siam Technic and CK Power 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 CK Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Technic and CK Power.
Diversification Opportunities for Siam Technic and CK Power
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siam and CKP-R is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Siam Technic Concrete and CK Power Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Power 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 CK Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Power Public has no effect on the direction of Siam Technic i.e., Siam Technic and CK Power go up and down completely randomly.
Pair Corralation between Siam Technic and CK Power
Assuming the 90 days trading horizon Siam Technic Concrete is expected to under-perform the CK Power. But the stock apears to be less risky and, when comparing its historical volatility, Siam Technic Concrete is 1.16 times less risky than CK Power. The stock trades about -0.08 of its potential returns per unit of risk. The CK Power Public is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 474.00 in CK Power Public on September 3, 2024 and sell it today you would lose (142.00) from holding CK Power Public or give up 29.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siam Technic Concrete vs. CK Power Public
Performance |
| Timeline |
| Siam Technic Concrete |
| CK Power Public |
Siam Technic and CK Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siam Technic and CK Power
The main advantage of trading using opposite Siam Technic and CK Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Technic position performs unexpectedly, CK Power 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 CK Power will offset losses from the drop in CK Power'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 |
| CK Power vs. TPI Polene Power | CK Power vs. SPCG Public | CK Power vs. CK Power Public | CK Power vs. The Erawan Group |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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