Correlation Between HYATT HOTELS-A and Siamgas
Can any of the company-specific risk be diversified away by investing in both HYATT HOTELS-A 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 HYATT HOTELS-A and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HYATT HOTELS A and Siamgas And Petrochemicals, you can compare the effects of market volatilities on HYATT HOTELS-A 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 HYATT HOTELS-A with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYATT HOTELS-A and Siamgas.
Diversification Opportunities for HYATT HOTELS-A and Siamgas
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HYATT and Siamgas is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding HYATT HOTELS A 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 HYATT HOTELS-A 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 HYATT HOTELS A 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 HYATT HOTELS-A i.e., HYATT HOTELS-A and Siamgas go up and down completely randomly.
Pair Corralation between HYATT HOTELS-A and Siamgas
Assuming the 90 days trading horizon HYATT HOTELS A is expected to under-perform the Siamgas. But the stock apears to be less risky and, when comparing its historical volatility, HYATT HOTELS A is 1.77 times less risky than Siamgas. The stock trades about -0.18 of its potential returns per unit of risk. The Siamgas And Petrochemicals is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Siamgas And Petrochemicals on November 28, 2024 and sell it today you would earn a total of 3.00 from holding Siamgas And Petrochemicals or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
HYATT HOTELS A vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| HYATT HOTELS A |
| Siamgas And Petroche |
HYATT HOTELS-A and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HYATT HOTELS-A and Siamgas
The main advantage of trading using opposite HYATT HOTELS-A and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYATT HOTELS-A 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.| HYATT HOTELS-A vs. MOLSON RS BEVERAGE | HYATT HOTELS-A vs. Boston Beer Co | HYATT HOTELS-A vs. AEGEAN AIRLINES | HYATT HOTELS-A vs. ScanSource |
| Siamgas vs. Broadridge Financial Solutions | Siamgas vs. Gold Road Resources | Siamgas vs. BII Railway Transportation | Siamgas vs. GUILD ESPORTS PLC |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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