Correlation Between Siam Commercial and Project Planning

Can any of the company-specific risk be diversified away by investing in both Siam Commercial and Project Planning 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 Project Planning 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 Project Planning Service, you can compare the effects of market volatilities on Siam Commercial and Project Planning 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 Project Planning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siam Commercial and Project Planning.

Diversification Opportunities for Siam Commercial and Project Planning

-0.65

Correlation Coefficient

Siam Commercial  Project Planning

Excellent diversification

The 3 months correlation between Siam and Project is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Commercial and Project Planning Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Project Planning Service 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 Project Planning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Project Planning Service has no effect on the direction of Siam Commercial i.e., Siam Commercial and Project Planning go up and down completely randomly.

Pair Corralation between Siam Commercial and Project Planning

Assuming the 90 days trading horizon The Siam Commercial is expected to under-perform the Project Planning. But the stock apears to be less risky and, when comparing its historical volatility, The Siam Commercial is 5.3 times less risky than Project Planning. The stock trades about -0.06 of its potential returns per unit of risk. The Project Planning Service is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  18.00  in Project Planning Service on April 23, 2025 and sell it today you would earn a total of  8.00  from holding Project Planning Service or generate 44.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.31%
Values	Daily Returns

The Siam Commercial  vs.  Project Planning Service

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.

Project Planning Service

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Project Planning Service are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Project Planning disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Siam Commercial and Project Planning

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

The idea behind The Siam Commercial and Project Planning Service 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.