Correlation Between Siamese Asset and Jakpaisan Estate

Can any of the company-specific risk be diversified away by investing in both Siamese Asset and Jakpaisan Estate 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 Siamese Asset and Jakpaisan Estate into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Siamese Asset Public and Jakpaisan Estate Public, you can compare the effects of market volatilities on Siamese Asset and Jakpaisan Estate 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 Siamese Asset with a short position of Jakpaisan Estate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamese Asset and Jakpaisan Estate.

Diversification Opportunities for Siamese Asset and Jakpaisan Estate

-0.39

Correlation Coefficient

Siamese Asset  Jakpaisan Estate

Very good diversification

The 3 months correlation between Siamese and Jakpaisan is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Siamese Asset Public and Jakpaisan Estate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jakpaisan Estate Public and Siamese Asset 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 Siamese Asset Public are associated (or correlated) with Jakpaisan Estate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jakpaisan Estate Public has no effect on the direction of Siamese Asset i.e., Siamese Asset and Jakpaisan Estate go up and down completely randomly.

Pair Corralation between Siamese Asset and Jakpaisan Estate

Assuming the 90 days horizon Siamese Asset Public is expected to under-perform the Jakpaisan Estate. But the stock apears to be less risky and, when comparing its historical volatility, Siamese Asset Public is 9.84 times less risky than Jakpaisan Estate. The stock trades about -0.05 of its potential returns per unit of risk. The Jakpaisan Estate Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  119.00  in Jakpaisan Estate Public on September 15, 2024 and sell it today you would earn a total of  11.00  from holding Jakpaisan Estate Public or generate 9.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.16%
Values	Daily Returns

Siamese Asset Public  vs.  Jakpaisan Estate Public

Siamese Asset Public

Risk-Adjusted Performance

0 of 100

Very Weak

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

Jakpaisan Estate Public

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jakpaisan Estate Public are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward-looking signals, Jakpaisan Estate disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Siamese Asset and Jakpaisan Estate

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

The idea behind Siamese Asset Public and Jakpaisan Estate 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.