Correlation Between KT Medical and Siam Cement
Can any of the company-specific risk be diversified away by investing in both KT 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 KT 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 KT Medical Service and The Siam Cement, you can compare the effects of market volatilities on KT 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 KT Medical with a short position of Siam Cement. Check out your portfolio center. Please also check ongoing floating volatility patterns of KT Medical and Siam Cement.
Diversification Opportunities for KT Medical and Siam Cement
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KTMS and Siam is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding KT Medical Service and The Siam Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Cement and KT 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 KT Medical Service 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 KT Medical i.e., KT Medical and Siam Cement go up and down completely randomly.
Pair Corralation between KT Medical and Siam Cement
Assuming the 90 days trading horizon KT Medical Service is expected to under-perform the Siam Cement. But the stock apears to be less risky and, when comparing its historical volatility, KT Medical Service is 1.3 times less risky than Siam Cement. The stock trades about -0.15 of its potential returns per unit of risk. The The Siam Cement is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 16,800 in The Siam Cement on December 28, 2024 and sell it today you would lose (1,000.00) from holding The Siam Cement or give up 5.95% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
KT Medical Service vs. The Siam Cement
Performance |
Timeline |
KT Medical Service |
Siam Cement |
KT Medical and Siam Cement Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KT Medical and Siam Cement
The main advantage of trading using opposite KT Medical and Siam Cement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KT 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.KT Medical vs. Yong Concrete PCL | KT Medical vs. Make To Win | KT Medical vs. Aurora Design PCL | KT Medical vs. Exotic Food Public |
Siam Cement vs. Heng Leasing Capital | Siam Cement vs. Inoue Rubber Public | Siam Cement vs. Ally Leasehold Real | Siam Cement vs. Chiangmai Frozen Foods |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |