Correlation Between OSOTSPA PCL and Siam City

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

By analyzing existing cross correlation between OSOTSPA PCL NVDR and Siam City Cement, you can compare the effects of market volatilities on OSOTSPA PCL and Siam City 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 OSOTSPA PCL with a short position of Siam City. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSOTSPA PCL and Siam City.

Diversification Opportunities for OSOTSPA PCL and Siam City

0.0

Correlation Coefficient

OSOTSPA PCL  Siam City

Pay attention - limited upside

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

Pair Corralation between OSOTSPA PCL and Siam City

If you would invest  14,650  in Siam City Cement on October 24, 2024 and sell it today you would earn a total of  1,450  from holding Siam City Cement or generate 9.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.67%
Values	Daily Returns

OSOTSPA PCL NVDR  vs.  Siam City Cement

OSOTSPA PCL NVDR

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OSOTSPA PCL NVDR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, OSOTSPA PCL is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Siam City Cement

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Siam City Cement are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Siam City may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with OSOTSPA PCL and Siam City

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

The idea behind OSOTSPA PCL NVDR and Siam City Cement 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.