Correlation Between Singha Estate and Siamese Asset
Can any of the company-specific risk be diversified away by investing in both Singha Estate and Siamese Asset 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 Singha Estate and Siamese Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singha Estate Public and Siamese Asset Public, you can compare the effects of market volatilities on Singha Estate and Siamese Asset 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 Singha Estate with a short position of Siamese Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singha Estate and Siamese Asset.
Diversification Opportunities for Singha Estate and Siamese Asset
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Singha and Siamese is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Singha Estate Public and Siamese Asset Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siamese Asset Public and Singha Estate 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 Singha Estate Public are associated (or correlated) with Siamese Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siamese Asset Public has no effect on the direction of Singha Estate i.e., Singha Estate and Siamese Asset go up and down completely randomly.
Pair Corralation between Singha Estate and Siamese Asset
Given the investment horizon of 90 days Singha Estate Public is expected to generate 34.71 times more return on investment than Siamese Asset. However, Singha Estate is 34.71 times more volatile than Siamese Asset Public. It trades about 0.04 of its potential returns per unit of risk. Siamese Asset Public is currently generating about -0.01 per unit of risk. If you would invest 183.00 in Singha Estate Public on September 25, 2024 and sell it today you would lose (92.00) from holding Singha Estate Public or give up 50.27% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Singha Estate Public vs. Siamese Asset Public
Performance |
Timeline |
Singha Estate Public |
Siamese Asset Public |
Singha Estate and Siamese Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Singha Estate and Siamese Asset
The main advantage of trading using opposite Singha Estate and Siamese Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singha Estate position performs unexpectedly, Siamese Asset 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 Siamese Asset will offset losses from the drop in Siamese Asset's long position.Singha Estate vs. Bangkok Bank Public | Singha Estate vs. The Siam Cement | Singha Estate vs. PTT Public | Singha Estate vs. SCB X 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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