Correlation Between Exotic Food and Siam Wellness
Can any of the company-specific risk be diversified away by investing in both Exotic Food and Siam Wellness 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 Exotic Food and Siam Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exotic Food Public and Siam Wellness Group, you can compare the effects of market volatilities on Exotic Food and Siam Wellness 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 Exotic Food with a short position of Siam Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exotic Food and Siam Wellness.
Diversification Opportunities for Exotic Food and Siam Wellness
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Exotic and Siam is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Exotic Food Public and Siam Wellness Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Wellness Group and Exotic Food 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 Exotic Food Public are associated (or correlated) with Siam Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Wellness Group has no effect on the direction of Exotic Food i.e., Exotic Food and Siam Wellness go up and down completely randomly.
Pair Corralation between Exotic Food and Siam Wellness
Assuming the 90 days horizon Exotic Food Public is expected to under-perform the Siam Wellness. But the stock apears to be less risky and, when comparing its historical volatility, Exotic Food Public is 1.04 times less risky than Siam Wellness. The stock trades about -0.11 of its potential returns per unit of risk. The Siam Wellness Group is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 785.00 in Siam Wellness Group on September 3, 2024 and sell it today you would lose (65.00) from holding Siam Wellness Group or give up 8.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exotic Food Public vs. Siam Wellness Group
Performance |
| Timeline |
| Exotic Food Public |
| Siam Wellness Group |
Exotic Food and Siam Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exotic Food and Siam Wellness
The main advantage of trading using opposite Exotic Food and Siam Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exotic Food position performs unexpectedly, Siam Wellness 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 Wellness will offset losses from the drop in Siam Wellness' long position.| Exotic Food vs. Mega Lifesciences Public | Exotic Food vs. Com7 PCL | Exotic Food vs. Thai Union Group | Exotic Food vs. Jay Mart Public |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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