Correlation Between Aedas Homes and Siamgas
Can any of the company-specific risk be diversified away by investing in both Aedas Homes 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 Aedas Homes and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aedas Homes SA and Siamgas And Petrochemicals, you can compare the effects of market volatilities on Aedas Homes 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 Aedas Homes with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aedas Homes and Siamgas.
Diversification Opportunities for Aedas Homes and Siamgas
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Aedas and Siamgas is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Aedas Homes SA 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 Aedas Homes 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 Aedas Homes SA 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 Aedas Homes i.e., Aedas Homes and Siamgas go up and down completely randomly.
Pair Corralation between Aedas Homes and Siamgas
Assuming the 90 days horizon Aedas Homes SA is expected to under-perform the Siamgas. But the stock apears to be less risky and, when comparing its historical volatility, Aedas Homes SA is 1.64 times less risky than Siamgas. The stock trades about -0.1 of its potential returns per unit of risk. The Siamgas And Petrochemicals is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Siamgas And Petrochemicals on September 1, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aedas Homes SA vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| Aedas Homes SA |
| Siamgas And Petroche |
Aedas Homes and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aedas Homes and Siamgas
The main advantage of trading using opposite Aedas Homes and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aedas Homes 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.The idea behind Aedas Homes SA and Siamgas And Petrochemicals 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |