Correlation Between Siam Commercial and OSOTSPA PCL

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

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

Diversification Opportunities for Siam Commercial and OSOTSPA PCL

-0.58

Correlation Coefficient

Siam Commercial  OSOTSPA PCL

Excellent diversification

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

Pair Corralation between Siam Commercial and OSOTSPA PCL

Assuming the 90 days trading horizon The Siam Commercial is expected to under-perform the OSOTSPA PCL. In addition to that, Siam Commercial is 1.1 times more volatile than OSOTSPA PCL NVDR. It trades about -0.06 of its total potential returns per unit of risk. OSOTSPA PCL NVDR is currently generating about 0.23 per unit of volatility. 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

The Siam Commercial  vs.  OSOTSPA PCL NVDR

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.

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.

Pair Trading with Siam Commercial and OSOTSPA PCL

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

The idea behind The Siam Commercial and OSOTSPA PCL NVDR 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.