Correlation Between Winnergy Medical and Siam Cement
Can any of the company-specific risk be diversified away by investing in both Winnergy Medical and Siam Cement 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 Winnergy Medical and Siam Cement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Winnergy Medical Public and The Siam Cement, you can compare the effects of market volatilities on Winnergy Medical and Siam Cement 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 Winnergy Medical with a short position of Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winnergy Medical and Siam Cement.
Diversification Opportunities for Winnergy Medical and Siam Cement
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Winnergy and Siam is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Winnergy Medical Public and The Siam Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Cement and Winnergy Medical 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 Winnergy Medical Public are associated (or correlated) with Siam Cement. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Cement has no effect on the direction of Winnergy Medical i.e., Winnergy Medical and Siam Cement go up and down completely randomly.
Pair Corralation between Winnergy Medical and Siam Cement
Assuming the 90 days trading horizon Winnergy Medical Public is expected to generate 1.04 times more return on investment than Siam Cement. However, Winnergy Medical is 1.04 times more volatile than The Siam Cement. It trades about -0.16 of its potential returns per unit of risk. The Siam Cement is currently generating about -0.29 per unit of risk. If you would invest 220.00 in Winnergy Medical Public on September 26, 2024 and sell it today you would lose (39.00) from holding Winnergy Medical Public or give up 17.73% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Winnergy Medical Public vs. The Siam Cement
Performance |
Timeline |
Winnergy Medical Public |
Siam Cement |
Winnergy Medical and Siam Cement Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Winnergy Medical and Siam Cement
The main advantage of trading using opposite Winnergy Medical and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Winnergy Medical position performs unexpectedly, Siam Cement 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 Siam Cement will offset losses from the drop in Siam Cement's long position.Winnergy Medical vs. East Coast Furnitech | Winnergy Medical vs. Forth Smart Service | Winnergy Medical vs. Filter Vision Public | Winnergy Medical vs. ARIP 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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