Correlation Between Siam Cement and Autocorp Holding

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

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

Diversification Opportunities for Siam Cement and Autocorp Holding

-0.16

Correlation Coefficient

Siam Cement  Autocorp Holding

Good diversification

The 3 months correlation between Siam and Autocorp is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and Autocorp Holding Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autocorp Holding Public and Siam Cement 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 Cement are associated (or correlated) with Autocorp Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autocorp Holding Public has no effect on the direction of Siam Cement i.e., Siam Cement and Autocorp Holding go up and down completely randomly.

Pair Corralation between Siam Cement and Autocorp Holding

Assuming the 90 days trading horizon The Siam Cement is expected to generate 0.62 times more return on investment than Autocorp Holding. However, The Siam Cement is 1.61 times less risky than Autocorp Holding. It trades about 0.18 of its potential returns per unit of risk. Autocorp Holding Public is currently generating about -0.03 per unit of risk. If you would invest  15,600  in The Siam Cement on April 24, 2025 and sell it today you would earn a total of  3,650  from holding The Siam Cement or generate 23.4% return on investment over 90 days.

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

The Siam Cement  vs.  Autocorp Holding Public

Siam Cement

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in The Siam Cement are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental drivers, Siam Cement sustained solid returns over the last few months and may actually be approaching a breakup point.

Autocorp Holding Public

Risk-Adjusted Performance

Very Weak

Over the last 90 days Autocorp Holding Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Autocorp Holding is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Siam Cement and Autocorp Holding

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

The idea behind The Siam Cement and Autocorp Holding 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.