Correlation Between TQM PORATION and Siam City
Can any of the company-specific risk be diversified away by investing in both TQM PORATION and Siam City 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 TQM PORATION and Siam City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TQM PORATION and Siam City Cement, you can compare the effects of market volatilities on TQM PORATION and Siam City 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 TQM PORATION with a short position of Siam City. Check out your portfolio center. Please also check ongoing floating volatility patterns of TQM PORATION and Siam City.
Diversification Opportunities for TQM PORATION and Siam City
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TQM and Siam is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding TQM PORATION and Siam City Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam City Cement and TQM PORATION 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 TQM PORATION are associated (or correlated) with Siam City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam City Cement has no effect on the direction of TQM PORATION i.e., TQM PORATION and Siam City go up and down completely randomly.
Pair Corralation between TQM PORATION and Siam City
Assuming the 90 days trading horizon TQM PORATION is expected to generate 3.08 times more return on investment than Siam City. However, TQM PORATION is 3.08 times more volatile than Siam City Cement. It trades about -0.05 of its potential returns per unit of risk. Siam City Cement is currently generating about -0.17 per unit of risk. If you would invest 2,583 in TQM PORATION on September 1, 2024 and sell it today you would lose (93.00) from holding TQM PORATION or give up 3.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
TQM PORATION vs. Siam City Cement
Performance |
| Timeline |
| TQM PORATION |
| Siam City Cement |
TQM PORATION and Siam City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TQM PORATION and Siam City
The main advantage of trading using opposite TQM PORATION and Siam City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TQM PORATION position performs unexpectedly, Siam City 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 City will offset losses from the drop in Siam City's long position.| TQM PORATION vs. PTG Energy Public | TQM PORATION vs. Bangkok Life Assurance | TQM PORATION vs. TQM Public | TQM PORATION vs. Thai Oil Public |
| Siam City vs. AAPICO Hitech Public | Siam City vs. AP Public | Siam City vs. Aikchol Hospital Public | Siam City 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |