Correlation Between Thitikorn Public and Siam Steel
Can any of the company-specific risk be diversified away by investing in both Thitikorn Public and Siam Steel 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 Thitikorn Public and Siam Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thitikorn Public and Siam Steel Service, you can compare the effects of market volatilities on Thitikorn Public and Siam Steel 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 Thitikorn Public with a short position of Siam Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thitikorn Public and Siam Steel.
Diversification Opportunities for Thitikorn Public and Siam Steel
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Thitikorn and Siam is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Thitikorn Public and Siam Steel Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Steel Service and Thitikorn 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 Thitikorn Public are associated (or correlated) with Siam Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Steel Service has no effect on the direction of Thitikorn Public i.e., Thitikorn Public and Siam Steel go up and down completely randomly.
Pair Corralation between Thitikorn Public and Siam Steel
Assuming the 90 days horizon Thitikorn Public is expected to under-perform the Siam Steel. But the stock apears to be less risky and, when comparing its historical volatility, Thitikorn Public is 1.85 times less risky than Siam Steel. The stock trades about -0.13 of its potential returns per unit of risk. The Siam Steel Service is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 228.00 in Siam Steel Service on September 2, 2024 and sell it today you would lose (6.00) from holding Siam Steel Service or give up 2.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thitikorn Public vs. Siam Steel Service
Performance |
| Timeline |
| Thitikorn Public |
| Siam Steel Service |
Thitikorn Public and Siam Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thitikorn Public and Siam Steel
The main advantage of trading using opposite Thitikorn Public and Siam Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thitikorn Public position performs unexpectedly, Siam Steel 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 Steel will offset losses from the drop in Siam Steel's long position.| Thitikorn Public vs. Rojana Industrial Park | Thitikorn Public vs. CPR Gomu Industrial | Thitikorn Public vs. PINTHONG INDUSTRIAL PARK | Thitikorn Public vs. Somboon Advance Technology |
| Siam Steel vs. AAPICO Hitech Public | Siam Steel vs. AP Public | Siam Steel vs. Aikchol Hospital Public | Siam Steel vs. Bank of Ayudhya |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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