Correlation Between Siam Global and II Group

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

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

Diversification Opportunities for Siam Global and II Group

0.75

Correlation Coefficient

Siam Global  II Group

Poor diversification

The 3 months correlation between Siam and IIG is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Siam Global House and II Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on II Group Public and Siam Global 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 Global House are associated (or correlated) with II Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of II Group Public has no effect on the direction of Siam Global i.e., Siam Global and II Group go up and down completely randomly.

Pair Corralation between Siam Global and II Group

Assuming the 90 days trading horizon Siam Global House is expected to under-perform the II Group. But the stock apears to be less risky and, when comparing its historical volatility, Siam Global House is 1.67 times less risky than II Group. The stock trades about -0.05 of its potential returns per unit of risk. The II Group Public is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  258.00  in II Group Public on April 24, 2025 and sell it today you would lose (48.00) from holding II Group Public or give up 18.6% of portfolio value over 90 days.

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

Siam Global House  vs.  II Group Public

Siam Global House

Risk-Adjusted Performance

Very Weak

Over the last 90 days Siam Global House has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

II Group Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days II Group Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical and fundamental indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Siam Global and II Group

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

The idea behind Siam Global House and II Group 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 Stocks Directory module to find actively traded stocks across global markets.