Correlation Between Siamgas and Western Copper
Can any of the company-specific risk be diversified away by investing in both Siamgas and Western Copper 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 Siamgas and Western Copper into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siamgas And Petrochemicals and Western Copper and, you can compare the effects of market volatilities on Siamgas and Western Copper 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 Siamgas with a short position of Western Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Western Copper.
Diversification Opportunities for Siamgas and Western Copper
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siamgas and Western is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Western Copper and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Copper and Siamgas 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 Siamgas And Petrochemicals are associated (or correlated) with Western Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Copper has no effect on the direction of Siamgas i.e., Siamgas and Western Copper go up and down completely randomly.
Pair Corralation between Siamgas and Western Copper
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 0.66 times more return on investment than Western Copper. However, Siamgas And Petrochemicals is 1.51 times less risky than Western Copper. It trades about 0.08 of its potential returns per unit of risk. Western Copper and is currently generating about -0.14 per unit of risk. If you would invest 17.00 in Siamgas And Petrochemicals on October 19, 2024 and sell it today you would earn a total of 1.00 from holding Siamgas And Petrochemicals or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. Western Copper and
Performance |
| Timeline |
| Siamgas And Petroche |
| Western Copper |
Siamgas and Western Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Western Copper
The main advantage of trading using opposite Siamgas and Western Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Western Copper 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 Western Copper will offset losses from the drop in Western Copper's long position.| Siamgas vs. PKSHA TECHNOLOGY INC | Siamgas vs. Sunny Optical Technology | Siamgas vs. SOFI TECHNOLOGIES | Siamgas vs. BioNTech SE |
| Western Copper vs. X FAB Silicon Foundries | Western Copper vs. SILICON LABORATOR | Western Copper vs. TRI CHEMICAL LABORATINC | Western Copper vs. Siamgas And Petrochemicals |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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