Correlation Between Sika AG and Siam Cement
Can any of the company-specific risk be diversified away by investing in both Sika AG 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 Sika AG and Siam Cement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sika AG ADR and The Siam Cement, you can compare the effects of market volatilities on Sika AG 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 Sika AG with a short position of Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sika AG and Siam Cement.
Diversification Opportunities for Sika AG and Siam Cement
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sika and Siam is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sika AG ADR and The Siam Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Cement and Sika AG 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 Sika AG ADR 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 Sika AG i.e., Sika AG and Siam Cement go up and down completely randomly.
Pair Corralation between Sika AG and Siam Cement
If you would invest (100.00) in The Siam Cement on December 4, 2024 and sell it today you would earn a total of 100.00 from holding The Siam Cement or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Sika AG ADR vs. The Siam Cement
Performance |
| Timeline |
| Sika AG ADR |
| Siam Cement |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Sika AG and Siam Cement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sika AG and Siam Cement
The main advantage of trading using opposite Sika AG and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sika AG 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.The idea behind Sika AG ADR and The Siam Cement pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Siam Cement vs. Seadrill Limited | Siam Cement vs. Tenaris SA ADR | Siam Cement vs. Ainsworth Game Technology | Siam Cement vs. Vantage Drilling International |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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