Correlation Between Intouch Holdings and Siam Steel

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

By analyzing existing cross correlation between Intouch Holdings Public and Siam Steel Service, you can compare the effects of market volatilities on Intouch Holdings and Siam Steel 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 Intouch Holdings with a short position of Siam Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intouch Holdings and Siam Steel.

Diversification Opportunities for Intouch Holdings and Siam Steel

0.25

Correlation Coefficient

Intouch Holdings  Siam Steel

Modest diversification

The 3 months correlation between Intouch and Siam is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Intouch Holdings Public and Siam Steel Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Steel Service and Intouch Holdings 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 Intouch Holdings Public are associated (or correlated) with Siam Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Steel Service has no effect on the direction of Intouch Holdings i.e., Intouch Holdings and Siam Steel go up and down completely randomly.

Pair Corralation between Intouch Holdings and Siam Steel

Assuming the 90 days trading horizon Intouch Holdings Public is expected to under-perform the Siam Steel. In addition to that, Intouch Holdings is 2.15 times more volatile than Siam Steel Service. It trades about -0.2 of its total potential returns per unit of risk. Siam Steel Service is currently generating about 0.04 per unit of volatility. If you would invest  206.00  in Siam Steel Service on December 4, 2024 and sell it today you would earn a total of  2.00  from holding Siam Steel Service or generate 0.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Intouch Holdings Public  vs.  Siam Steel Service

Intouch Holdings Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intouch Holdings Public 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 fundamental 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.

Siam Steel Service

Risk-Adjusted Performance

Very Weak

Over the last 90 days Siam Steel Service has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Siam Steel is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Intouch Holdings and Siam Steel

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

The idea behind Intouch Holdings Public and Siam Steel Service 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.