Correlation Between SVOA Public and Siam Cement
Can any of the company-specific risk be diversified away by investing in both SVOA Public and Siam Cement 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 SVOA Public and Siam Cement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SVOA Public and The Siam Cement, you can compare the effects of market volatilities on SVOA Public and Siam Cement 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 SVOA Public with a short position of Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of SVOA Public and Siam Cement.
Diversification Opportunities for SVOA Public and Siam Cement
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SVOA and Siam is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding SVOA Public and The Siam Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Cement and SVOA Public 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 SVOA Public are associated (or correlated) with Siam Cement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Cement has no effect on the direction of SVOA Public i.e., SVOA Public and Siam Cement go up and down completely randomly.
Pair Corralation between SVOA Public and Siam Cement
Assuming the 90 days trading horizon SVOA Public is expected to generate 34.51 times more return on investment than Siam Cement. However, SVOA Public is 34.51 times more volatile than The Siam Cement. It trades about 0.04 of its potential returns per unit of risk. The Siam Cement is currently generating about -0.08 per unit of risk. If you would invest 229.00 in SVOA Public on September 12, 2024 and sell it today you would lose (106.00) from holding SVOA Public or give up 46.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SVOA Public vs. The Siam Cement
Performance |
| Timeline |
| SVOA Public |
| Siam Cement |
SVOA Public and Siam Cement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SVOA Public and Siam Cement
The main advantage of trading using opposite SVOA Public and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SVOA Public position performs unexpectedly, Siam Cement 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 Siam Cement will offset losses from the drop in Siam Cement's long position.| SVOA Public vs. KCE Electronics Public | SVOA Public vs. Land and Houses | SVOA Public vs. Delta Electronics Public | SVOA Public vs. The Siam Cement |
| Siam Cement vs. AAPICO Hitech Public | Siam Cement vs. Siam Technic Concrete | Siam Cement vs. Silicon Craft Technology | Siam Cement vs. Peerapat Technology 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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