Correlation Between Siam Global and Inter Pharma

Can any of the company-specific risk be diversified away by investing in both Siam Global and Inter Pharma 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 Inter Pharma 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 Inter Pharma Public, you can compare the effects of market volatilities on Siam Global and Inter Pharma 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 Inter Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Global and Inter Pharma.

Diversification Opportunities for Siam Global and Inter Pharma

0.0

Correlation Coefficient

Siam Global  Inter Pharma

Pay attention - limited upside

The 3 months correlation between Siam and Inter is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Siam Global House and Inter Pharma Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inter Pharma Public 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 Inter Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inter Pharma Public has no effect on the direction of Siam Global i.e., Siam Global and Inter Pharma go up and down completely randomly.

Pair Corralation between Siam Global and Inter Pharma

If you would invest (100.00) in Inter Pharma Public on October 8, 2024 and sell it today you would earn a total of  100.00  from holding Inter Pharma Public or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Siam Global House  vs.  Inter Pharma Public

Siam Global House

Risk-Adjusted Performance

0 of 100

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 February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Inter Pharma Public

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Inter Pharma Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent fundamental drivers, Inter Pharma is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Siam Global and Inter Pharma

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

The idea behind Siam Global House and Inter Pharma Public 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.