Correlation Between Siam Cement and MBK Public
Can any of the company-specific risk be diversified away by investing in both Siam Cement and MBK Public 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 MBK Public 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 MBK Public, you can compare the effects of market volatilities on Siam Cement and MBK Public 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 MBK Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and MBK Public.
Diversification Opportunities for Siam Cement and MBK Public
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Siam and MBK is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and MBK Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MBK 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 MBK Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MBK Public has no effect on the direction of Siam Cement i.e., Siam Cement and MBK Public go up and down completely randomly.
Pair Corralation between Siam Cement and MBK Public
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the MBK Public. But the stock apears to be less risky and, when comparing its historical volatility, The Siam Cement is 1.37 times less risky than MBK Public. The stock trades about -0.09 of its potential returns per unit of risk. The MBK Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,571 in MBK Public on September 14, 2024 and sell it today you would earn a total of 349.00 from holding MBK Public or generate 22.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
The Siam Cement vs. MBK Public
Performance |
Timeline |
Siam Cement |
MBK Public |
Siam Cement and MBK Public Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siam Cement and MBK Public
The main advantage of trading using opposite Siam Cement and MBK Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, MBK Public 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 MBK Public will offset losses from the drop in MBK Public's long position.Siam Cement vs. Grande Hospitality Real | Siam Cement vs. Bumrungrad Hospital Public | Siam Cement vs. Rich Sport Public | Siam Cement vs. Sri panwa Hospitality |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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