Correlation Between Samchai Steel and Siamese Asset
Can any of the company-specific risk be diversified away by investing in both Samchai Steel 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 Samchai Steel and Siamese Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Samchai Steel Industries and Siamese Asset Public, you can compare the effects of market volatilities on Samchai Steel 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 Samchai Steel with a short position of Siamese Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Samchai Steel and Siamese Asset.
Diversification Opportunities for Samchai Steel and Siamese Asset
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Samchai and Siamese is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Samchai Steel Industries 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 Samchai Steel 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 Samchai Steel Industries 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 Samchai Steel i.e., Samchai Steel and Siamese Asset go up and down completely randomly.
Pair Corralation between Samchai Steel and Siamese Asset
Assuming the 90 days trading horizon Samchai Steel Industries is expected to generate 21.9 times more return on investment than Siamese Asset. However, Samchai Steel is 21.9 times more volatile than Siamese Asset Public. It trades about 0.13 of its potential returns per unit of risk. Siamese Asset Public is currently generating about 0.0 per unit of risk. If you would invest 13.00 in Samchai Steel Industries on September 23, 2024 and sell it today you would earn a total of 13.00 from holding Samchai Steel Industries or generate 100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Samchai Steel Industries vs. Siamese Asset Public
Performance |
Timeline |
Samchai Steel Industries |
Siamese Asset Public |
Samchai Steel and Siamese Asset Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Samchai Steel and Siamese Asset
The main advantage of trading using opposite Samchai Steel and Siamese Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Samchai Steel 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.Samchai Steel vs. Dynasty Ceramic Public | Samchai Steel vs. Chonburi Concrete Product | Samchai Steel vs. General Engineering Public | Samchai Steel vs. Eastern Star Real |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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