Correlation Between COFCO Joycome and Siamgas
Can any of the company-specific risk be diversified away by investing in both COFCO Joycome and Siamgas 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 COFCO Joycome and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COFCO Joycome Foods and Siamgas And Petrochemicals, you can compare the effects of market volatilities on COFCO Joycome and Siamgas 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 COFCO Joycome with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of COFCO Joycome and Siamgas.
Diversification Opportunities for COFCO Joycome and Siamgas
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between COFCO and Siamgas is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding COFCO Joycome Foods and Siamgas And Petrochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siamgas And Petroche and COFCO Joycome 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 COFCO Joycome Foods are associated (or correlated) with Siamgas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siamgas And Petroche has no effect on the direction of COFCO Joycome i.e., COFCO Joycome and Siamgas go up and down completely randomly.
Pair Corralation between COFCO Joycome and Siamgas
Assuming the 90 days horizon COFCO Joycome Foods is expected to under-perform the Siamgas. In addition to that, COFCO Joycome is 1.42 times more volatile than Siamgas And Petrochemicals. It trades about -0.23 of its total potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.01 per unit of volatility. If you would invest 18.00 in Siamgas And Petrochemicals on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Siamgas And Petrochemicals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
COFCO Joycome Foods vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| COFCO Joycome Foods |
| Siamgas And Petroche |
COFCO Joycome and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COFCO Joycome and Siamgas
The main advantage of trading using opposite COFCO Joycome and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COFCO Joycome position performs unexpectedly, Siamgas 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 Siamgas will offset losses from the drop in Siamgas' long position.| COFCO Joycome vs. Aluminum of | COFCO Joycome vs. JD SPORTS FASH | COFCO Joycome vs. Fortescue Metals Group | COFCO Joycome vs. Perseus Mining Limited |
| Siamgas vs. SOUTHWEST AIRLINES | Siamgas vs. Astral Foods Limited | Siamgas vs. COFCO Joycome Foods | Siamgas vs. Aegean Airlines SA |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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