Correlation Between PLAYMATES TOYS and Siamgas
Can any of the company-specific risk be diversified away by investing in both PLAYMATES TOYS 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 PLAYMATES TOYS and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PLAYMATES TOYS and Siamgas And Petrochemicals, you can compare the effects of market volatilities on PLAYMATES TOYS 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 PLAYMATES TOYS with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of PLAYMATES TOYS and Siamgas.
Diversification Opportunities for PLAYMATES TOYS and Siamgas
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between PLAYMATES and Siamgas is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding PLAYMATES TOYS 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 PLAYMATES TOYS 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 PLAYMATES TOYS 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 PLAYMATES TOYS i.e., PLAYMATES TOYS and Siamgas go up and down completely randomly.
Pair Corralation between PLAYMATES TOYS and Siamgas
Assuming the 90 days trading horizon PLAYMATES TOYS is expected to generate 0.99 times more return on investment than Siamgas. However, PLAYMATES TOYS is 1.01 times less risky than Siamgas. It trades about 0.08 of its potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.03 per unit of risk. If you would invest 2.91 in PLAYMATES TOYS on September 25, 2024 and sell it today you would earn a total of 3.99 from holding PLAYMATES TOYS or generate 137.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PLAYMATES TOYS vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| PLAYMATES TOYS |
| Siamgas And Petroche |
PLAYMATES TOYS and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PLAYMATES TOYS and Siamgas
The main advantage of trading using opposite PLAYMATES TOYS and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PLAYMATES TOYS 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.| PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Apple Inc | PLAYMATES TOYS vs. Microsoft |
| Siamgas vs. Japan Tobacco | Siamgas vs. Cass Information Systems | Siamgas vs. DATAGROUP SE | 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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