Correlation Between Siam Global and Intermedical Care

Can any of the company-specific risk be diversified away by investing in both Siam Global and Intermedical Care 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 Global and Intermedical Care into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Siam Global House and Intermedical Care and, you can compare the effects of market volatilities on Siam Global and Intermedical Care 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 Global with a short position of Intermedical Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Global and Intermedical Care.

Diversification Opportunities for Siam Global and Intermedical Care

0.94

Correlation Coefficient

Siam Global  Intermedical Care

Almost no diversification

The 3 months correlation between Siam and Intermedical is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Siam Global House and Intermedical Care and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intermedical Care and Siam Global 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 Siam Global House are associated (or correlated) with Intermedical Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intermedical Care has no effect on the direction of Siam Global i.e., Siam Global and Intermedical Care go up and down completely randomly.

Pair Corralation between Siam Global and Intermedical Care

Assuming the 90 days trading horizon Siam Global House is expected to under-perform the Intermedical Care. In addition to that, Siam Global is 4.0 times more volatile than Intermedical Care and. It trades about -0.27 of its total potential returns per unit of risk. Intermedical Care and is currently generating about -0.24 per unit of volatility. If you would invest  478.00  in Intermedical Care and on December 25, 2024 and sell it today you would lose (62.00) from holding Intermedical Care and or give up 12.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.39%
Values	Daily Returns

Siam Global House  vs.  Intermedical Care and

Siam Global House

Risk-Adjusted Performance

Very Weak

Over the last 90 days Siam Global House has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Intermedical Care

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intermedical Care and has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Siam Global and Intermedical Care

The main advantage of trading using opposite Siam Global and Intermedical Care positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Global position performs unexpectedly, Intermedical Care 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 Intermedical Care will offset losses from the drop in Intermedical Care's long position.

The idea behind Siam Global House and Intermedical Care and pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.