Correlation Between Siam Cement and Areeya Property
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Areeya Property 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 Siam Cement and Areeya Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Siam Cement and Areeya Property Public, you can compare the effects of market volatilities on Siam Cement and Areeya Property 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 Siam Cement with a short position of Areeya Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Areeya Property.
Diversification Opportunities for Siam Cement and Areeya Property
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siam and Areeya is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Areeya Property Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Areeya Property Public and Siam Cement 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 The Siam Cement are associated (or correlated) with Areeya Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Areeya Property Public has no effect on the direction of Siam Cement i.e., Siam Cement and Areeya Property go up and down completely randomly.
Pair Corralation between Siam Cement and Areeya Property
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the Areeya Property. In addition to that, Siam Cement is 2.27 times more volatile than Areeya Property Public. It trades about -0.35 of its total potential returns per unit of risk. Areeya Property Public is currently generating about 0.0 per unit of volatility. If you would invest 492.00 in Areeya Property Public on September 25, 2024 and sell it today you would earn a total of 0.00 from holding Areeya Property Public or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.0% |
Values | Daily Returns |
The Siam Cement vs. Areeya Property Public
Performance |
Timeline |
Siam Cement |
Areeya Property Public |
Siam Cement and Areeya Property Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siam Cement and Areeya Property
The main advantage of trading using opposite Siam Cement and Areeya Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Areeya Property 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 Areeya Property will offset losses from the drop in Areeya Property's long position.Siam Cement vs. Wyncoast Industrial Park | Siam Cement vs. Porn Prom Metal | Siam Cement vs. Stars Microelectronics Public | Siam Cement vs. Winnergy Medical Public |
Areeya Property vs. Bangkok Bank Public | Areeya Property vs. The Siam Cement | Areeya Property vs. PTT Public | Areeya Property vs. SCB X Public |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Money Managers Screen money managers from public funds and ETFs managed around the world |