Correlation Between Thanachart Capital and Siam Cement
Can any of the company-specific risk be diversified away by investing in both Thanachart Capital 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 Thanachart Capital and Siam Cement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thanachart Capital Public and The Siam Cement, you can compare the effects of market volatilities on Thanachart Capital 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 Thanachart Capital with a short position of Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thanachart Capital and Siam Cement.
Diversification Opportunities for Thanachart Capital and Siam Cement
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Thanachart and Siam is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Thanachart Capital 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 Thanachart Capital 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 Thanachart Capital 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 Thanachart Capital i.e., Thanachart Capital and Siam Cement go up and down completely randomly.
Pair Corralation between Thanachart Capital and Siam Cement
Assuming the 90 days trading horizon Thanachart Capital Public is expected to generate 0.83 times more return on investment than Siam Cement. However, Thanachart Capital Public is 1.2 times less risky than Siam Cement. It trades about 0.02 of its potential returns per unit of risk. The Siam Cement is currently generating about -0.11 per unit of risk. If you would invest 4,600 in Thanachart Capital Public on September 2, 2024 and sell it today you would earn a total of 300.00 from holding Thanachart Capital Public or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thanachart Capital Public vs. The Siam Cement
Performance |
| Timeline |
| Thanachart Capital Public |
| Siam Cement |
Thanachart Capital and Siam Cement Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thanachart Capital and Siam Cement
The main advantage of trading using opposite Thanachart Capital and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thanachart Capital 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.| Thanachart Capital vs. TISCO Financial Group | Thanachart Capital vs. Kiatnakin Phatra Bank | Thanachart Capital vs. SCB X Public | Thanachart Capital vs. Kasikornbank Public |
| Siam Cement vs. Healthlead Public | Siam Cement vs. Information and Communication | Siam Cement vs. Copperwired Public | Siam Cement vs. Turnkey Communication Services |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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