Correlation Between OSOTSPA PCL and Siam Commercial

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

By analyzing existing cross correlation between OSOTSPA PCL NVDR and The Siam Commercial, you can compare the effects of market volatilities on OSOTSPA PCL and Siam Commercial 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 OSOTSPA PCL with a short position of Siam Commercial. Check out your portfolio center. Please also check ongoing floating volatility patterns of OSOTSPA PCL and Siam Commercial.

Diversification Opportunities for OSOTSPA PCL and Siam Commercial

-0.58

Correlation Coefficient

OSOTSPA PCL  Siam Commercial

Excellent diversification

The 3 months correlation between OSOTSPA and Siam is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding OSOTSPA PCL NVDR and The Siam Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Commercial and OSOTSPA PCL 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 OSOTSPA PCL NVDR are associated (or correlated) with Siam Commercial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Commercial has no effect on the direction of OSOTSPA PCL i.e., OSOTSPA PCL and Siam Commercial go up and down completely randomly.

Pair Corralation between OSOTSPA PCL and Siam Commercial

Assuming the 90 days trading horizon OSOTSPA PCL NVDR is expected to generate 0.91 times more return on investment than Siam Commercial. However, OSOTSPA PCL NVDR is 1.1 times less risky than Siam Commercial. It trades about 0.23 of its potential returns per unit of risk. The Siam Commercial is currently generating about -0.06 per unit of risk. If you would invest  1,443  in OSOTSPA PCL NVDR on April 23, 2025 and sell it today you would earn a total of  187.00  from holding OSOTSPA PCL NVDR or generate 12.96% return on investment over 90 days.

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

OSOTSPA PCL NVDR  vs.  The Siam Commercial

OSOTSPA PCL NVDR

Risk-Adjusted Performance

Solid

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

Siam Commercial

Risk-Adjusted Performance

Very Weak

Over the last 90 days The Siam Commercial has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Siam Commercial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with OSOTSPA PCL and Siam Commercial

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

The idea behind OSOTSPA PCL NVDR and The Siam Commercial 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.