Correlation Between Siri Prime and Thaicom Public

Can any of the company-specific risk be diversified away by investing in both Siri Prime and Thaicom Public 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 Siri Prime and Thaicom Public into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Siri Prime and Thaicom Public

0.27

Correlation Coefficient

Siri Prime  Thaicom Public

Modest diversification

The 3 months correlation between Siri and Thaicom is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Siri Prime Office and Thaicom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thaicom Public and Siri Prime 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 Siri Prime Office are associated (or correlated) with Thaicom Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thaicom Public has no effect on the direction of Siri Prime i.e., Siri Prime and Thaicom Public go up and down completely randomly.

Pair Corralation between Siri Prime and Thaicom Public

Assuming the 90 days trading horizon Siri Prime Office is expected to generate 287.8 times more return on investment than Thaicom Public. However, Siri Prime is 287.8 times more volatile than Thaicom Public. It trades about 0.24 of its potential returns per unit of risk. Thaicom Public is currently generating about 0.21 per unit of risk. If you would invest  779.00  in Siri Prime Office on September 13, 2024 and sell it today you would lose (779.00) from holding Siri Prime Office or give up 100.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	91.67%
Values	Daily Returns

Siri Prime Office  vs.  Thaicom Public

Siri Prime Office

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Siri Prime Office are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental drivers, Siri Prime sustained solid returns over the last few months and may actually be approaching a breakup point.

Thaicom Public

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Thaicom Public are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting basic indicators, Thaicom Public may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Siri Prime and Thaicom Public

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

The idea behind Siri Prime Office and Thaicom 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.