Correlation Between Siam Makro and Alpha Capital

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

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

Diversification Opportunities for Siam Makro and Alpha Capital

0.0

Correlation Coefficient

Siam Makro  Alpha Capital

Pay attention - limited upside

The 3 months correlation between Siam and Alpha is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Siam Makro PCL and Alpha Capital Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Capital Acquisition and Siam Makro 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 Siam Makro PCL are associated (or correlated) with Alpha Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Capital Acquisition has no effect on the direction of Siam Makro i.e., Siam Makro and Alpha Capital go up and down completely randomly.

Pair Corralation between Siam Makro and Alpha Capital

If you would invest  105.00  in Siam Makro PCL on January 19, 2024 and sell it today you would earn a total of  1.00  from holding Siam Makro PCL or generate 0.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Siam Makro PCL  vs.  Alpha Capital Acquisition

Siam Makro PCL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Siam Makro PCL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Siam Makro is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Alpha Capital Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alpha Capital Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Alpha Capital is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Siam Makro and Alpha Capital

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

The idea behind Siam Makro PCL and Alpha Capital Acquisition 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.