Correlation Between Siam Cement and Rojana Industrial
Can any of the company-specific risk be diversified away by investing in both Siam Cement and Rojana Industrial 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 Cement and Rojana Industrial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Siam Cement and Rojana Industrial Park, you can compare the effects of market volatilities on Siam Cement and Rojana Industrial 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 Cement with a short position of Rojana Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and Rojana Industrial.
Diversification Opportunities for Siam Cement and Rojana Industrial
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Siam and Rojana is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Rojana Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rojana Industrial Park and Siam Cement 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 The Siam Cement are associated (or correlated) with Rojana Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rojana Industrial Park has no effect on the direction of Siam Cement i.e., Siam Cement and Rojana Industrial go up and down completely randomly.
Pair Corralation between Siam Cement and Rojana Industrial
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the Rojana Industrial. In addition to that, Siam Cement is 1.2 times more volatile than Rojana Industrial Park. It trades about -0.28 of its total potential returns per unit of risk. Rojana Industrial Park is currently generating about -0.13 per unit of volatility. If you would invest 650.00 in Rojana Industrial Park on December 1, 2024 and sell it today you would lose (85.00) from holding Rojana Industrial Park or give up 13.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
The Siam Cement vs. Rojana Industrial Park
Performance |
Timeline |
Siam Cement |
Rojana Industrial Park |
Siam Cement and Rojana Industrial Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siam Cement and Rojana Industrial
The main advantage of trading using opposite Siam Cement and Rojana Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, Rojana Industrial 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 Rojana Industrial will offset losses from the drop in Rojana Industrial's long position.Siam Cement vs. Globlex Holding Management | Siam Cement vs. Asia Medical Agricultural | Siam Cement vs. Ladprao General Hospital | Siam Cement vs. THONBURI HEALTHCARE GRO NVDR |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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