Correlation Between Siam Cement and Navakij Insurance
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Navakij Insurance 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 Navakij Insurance 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 The Navakij Insurance, you can compare the effects of market volatilities on Siam Cement and Navakij Insurance 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 Navakij Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Navakij Insurance.
Diversification Opportunities for Siam Cement and Navakij Insurance
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siam and Navakij is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and The Navakij Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Navakij Insurance 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 Navakij Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Navakij Insurance has no effect on the direction of Siam Cement i.e., Siam Cement and Navakij Insurance go up and down completely randomly.
Pair Corralation between Siam Cement and Navakij Insurance
If you would invest 0.00 in The Navakij Insurance on September 28, 2024 and sell it today you would earn a total of 0.00 from holding The Navakij Insurance or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 0.97% |
Values | Daily Returns |
The Siam Cement vs. The Navakij Insurance
Performance |
Timeline |
Siam Cement |
Navakij Insurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Siam Cement and Navakij Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siam Cement and Navakij Insurance
The main advantage of trading using opposite Siam Cement and Navakij Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Navakij Insurance 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 Navakij Insurance will offset losses from the drop in Navakij Insurance's long position.Siam Cement vs. Dynasty Ceramic Public | Siam Cement vs. General Engineering Public | Siam Cement vs. Eastern Star Real | Siam Cement vs. Better World Green |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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