Correlation Between Siam Cement and UAC Global
Can any of the company-specific risk be diversified away by investing in both Siam Cement and UAC Global 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 UAC Global 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 UAC Global Public, you can compare the effects of market volatilities on Siam Cement and UAC Global 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 UAC Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Cement and UAC Global.
Diversification Opportunities for Siam Cement and UAC Global
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siam and UAC is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and UAC Global Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UAC Global Public 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 UAC Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UAC Global Public has no effect on the direction of Siam Cement i.e., Siam Cement and UAC Global go up and down completely randomly.
Pair Corralation between Siam Cement and UAC Global
Assuming the 90 days trading horizon The Siam Cement is expected to under-perform the UAC Global. In addition to that, Siam Cement is 1.36 times more volatile than UAC Global Public. It trades about -0.3 of its total potential returns per unit of risk. UAC Global Public is currently generating about -0.02 per unit of volatility. If you would invest 319.00 in UAC Global Public on September 15, 2024 and sell it today you would lose (7.00) from holding UAC Global Public or give up 2.19% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
The Siam Cement vs. UAC Global Public
Performance |
Timeline |
Siam Cement |
UAC Global Public |
Siam Cement and UAC Global Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siam Cement and UAC Global
The main advantage of trading using opposite Siam Cement and UAC Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siam Cement position performs unexpectedly, UAC Global 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 UAC Global will offset losses from the drop in UAC Global's long position.Siam Cement vs. PINTHONG INDUSTRIAL PARK | Siam Cement vs. KT Medical Service | Siam Cement vs. Bangkok Dusit Medical | Siam Cement vs. CPR Gomu Industrial |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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