Correlation Between Siam Technic and Healthlead Public

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

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

Diversification Opportunities for Siam Technic and Healthlead Public

-0.05

Correlation Coefficient

Siam Technic  Healthlead Public

Good diversification

The 3 months correlation between Siam and Healthlead is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Siam Technic Concrete and Healthlead Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthlead Public and Siam Technic 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 Siam Technic Concrete are associated (or correlated) with Healthlead Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthlead Public has no effect on the direction of Siam Technic i.e., Siam Technic and Healthlead Public go up and down completely randomly.

Pair Corralation between Siam Technic and Healthlead Public

Assuming the 90 days trading horizon Siam Technic Concrete is expected to under-perform the Healthlead Public. In addition to that, Siam Technic is 1.16 times more volatile than Healthlead Public. It trades about -0.12 of its total potential returns per unit of risk. Healthlead Public is currently generating about 0.09 per unit of volatility. If you would invest  810.00  in Healthlead Public on September 3, 2024 and sell it today you would earn a total of  70.00  from holding Healthlead Public or generate 8.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Siam Technic Concrete  vs.  Healthlead Public

Siam Technic Concrete

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siam Technic Concrete has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Healthlead Public

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Healthlead Public are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental drivers, Healthlead Public may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Siam Technic and Healthlead Public

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

The idea behind Siam Technic Concrete and Healthlead 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.