Correlation Between Siamgas and SOFTBANK P
Can any of the company-specific risk be diversified away by investing in both Siamgas and SOFTBANK P 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 SOFTBANK P 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 SOFTBANK P ADR, you can compare the effects of market volatilities on Siamgas and SOFTBANK P 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 SOFTBANK P. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and SOFTBANK P.
Diversification Opportunities for Siamgas and SOFTBANK P
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siamgas and SOFTBANK is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and SOFTBANK P ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOFTBANK P ADR 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 SOFTBANK P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOFTBANK P ADR has no effect on the direction of Siamgas i.e., Siamgas and SOFTBANK P go up and down completely randomly.
Pair Corralation between Siamgas and SOFTBANK P
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 2.76 times more return on investment than SOFTBANK P. However, Siamgas is 2.76 times more volatile than SOFTBANK P ADR. It trades about 0.05 of its potential returns per unit of risk. SOFTBANK P ADR is currently generating about 0.02 per unit of risk. If you would invest 15.00 in Siamgas And Petrochemicals on September 12, 2024 and sell it today you would earn a total of 3.00 from holding Siamgas And Petrochemicals or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. SOFTBANK P ADR
Performance |
| Timeline |
| Siamgas And Petroche |
| SOFTBANK P ADR |
Siamgas and SOFTBANK P Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and SOFTBANK P
The main advantage of trading using opposite Siamgas and SOFTBANK P positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, SOFTBANK P 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 SOFTBANK P will offset losses from the drop in SOFTBANK P's long position.| Siamgas vs. Singapore Reinsurance | Siamgas vs. PARKEN Sport Entertainment | Siamgas vs. PROSIEBENSAT1 MEDIADR4 | Siamgas vs. MSAD INSURANCE |
| SOFTBANK P vs. Japan Medical Dynamic | SOFTBANK P vs. GEAR4MUSIC LS 10 | SOFTBANK P vs. TSOGO SUN GAMING | SOFTBANK P vs. OURGAME INTHOLDL 00005 |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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