Correlation Between WHA Utilities and Siam Commercial
Can any of the company-specific risk be diversified away by investing in both WHA Utilities and Siam Commercial 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 WHA Utilities and Siam Commercial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WHA Utilities and and The Siam Commercial, you can compare the effects of market volatilities on WHA Utilities and Siam Commercial 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 WHA Utilities with a short position of Siam Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of WHA Utilities and Siam Commercial.
Diversification Opportunities for WHA Utilities and Siam Commercial
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between WHA and Siam is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding WHA Utilities and and The Siam Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Commercial and WHA Utilities 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 WHA Utilities and are associated (or correlated) with Siam Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Commercial has no effect on the direction of WHA Utilities i.e., WHA Utilities and Siam Commercial go up and down completely randomly.
Pair Corralation between WHA Utilities and Siam Commercial
Assuming the 90 days trading horizon WHA Utilities is expected to generate 1.91 times less return on investment than Siam Commercial. In addition to that, WHA Utilities is 1.17 times more volatile than The Siam Commercial. It trades about 0.1 of its total potential returns per unit of risk. The Siam Commercial is currently generating about 0.22 per unit of volatility. If you would invest 10,945 in The Siam Commercial on September 19, 2024 and sell it today you would earn a total of 655.00 from holding The Siam Commercial or generate 5.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WHA Utilities and vs. The Siam Commercial
Performance |
| Timeline |
| WHA Utilities |
| Siam Commercial |
WHA Utilities and Siam Commercial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WHA Utilities and Siam Commercial
The main advantage of trading using opposite WHA Utilities and Siam Commercial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WHA Utilities position performs unexpectedly, Siam Commercial 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 Commercial will offset losses from the drop in Siam Commercial's long position.| WHA Utilities vs. WHA Public | WHA Utilities vs. Global Power Synergy | WHA Utilities vs. TPI Polene Power | WHA Utilities vs. Bangkok Expressway and |
| Siam Commercial vs. PTT Public | Siam Commercial vs. CP ALL Public | Siam Commercial vs. SCB X Public | Siam Commercial vs. Airports of Thailand |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |