Correlation Between After You and Siam Wellness

Can any of the company-specific risk be diversified away by investing in both After You 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 After You and Siam Wellness into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between After You Public and Siam Wellness Group, you can compare the effects of market volatilities on After You 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 After You with a short position of Siam Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of After You and Siam Wellness.

Diversification Opportunities for After You and Siam Wellness

0.36

Correlation Coefficient

After You  Siam Wellness

Weak diversification

The 3 months correlation between After and Siam is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding After You 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 After You 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 After You 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 After You i.e., After You and Siam Wellness go up and down completely randomly.

Pair Corralation between After You and Siam Wellness

Assuming the 90 days horizon After You Public is expected to generate 0.75 times more return on investment than Siam Wellness. However, After You Public is 1.33 times less risky than Siam Wellness. It trades about 0.21 of its potential returns per unit of risk. Siam Wellness Group is currently generating about 0.08 per unit of risk. If you would invest  930.00  in After You Public on September 11, 2024 and sell it today you would earn a total of  210.00  from holding After You Public or generate 22.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

After You Public  vs.  Siam Wellness Group

After You Public

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in After You Public are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite weak fundamental drivers, After You disclosed solid returns over the last few months and may actually be approaching a breakup point.

Siam Wellness Group

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Siam Wellness Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Siam Wellness may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with After You and Siam Wellness

The main advantage of trading using opposite After You and Siam Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if After You 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.

The idea behind After You Public and Siam Wellness Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.