Correlation Between Siam Cement and KK Superstore

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

Diversification Opportunities for Siam Cement and KK Superstore

-0.59

Correlation Coefficient

Siam Cement  KK Superstore

Excellent diversification

The 3 months correlation between Siam and KK Superstore is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding The Siam Cement and KK Superstore Southern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KK Superstore Southern 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 KK Superstore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KK Superstore Southern has no effect on the direction of Siam Cement i.e., Siam Cement and KK Superstore go up and down completely randomly.

Pair Corralation between Siam Cement and KK Superstore

Assuming the 90 days trading horizon The Siam Cement is expected to generate 0.81 times more return on investment than KK Superstore. However, The Siam Cement is 1.24 times less risky than KK Superstore. It trades about 0.18 of its potential returns per unit of risk. KK Superstore Southern is currently generating about -0.06 per unit of risk. If you would invest  15,200  in The Siam Cement on April 24, 2025 and sell it today you would earn a total of  4,050  from holding The Siam Cement or generate 26.64% return on investment over 90 days.

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

The Siam Cement  vs.  KK Superstore Southern

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 13 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting fundamental indicators, Siam Cement disclosed solid returns over the last few months and may actually be approaching a breakup point.

KK Superstore Southern

Risk-Adjusted Performance

Very Weak

Over the last 90 days KK Superstore Southern has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's fundamental drivers 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 Cement and KK Superstore

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

The idea behind The Siam Cement and KK Superstore Southern 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.