Correlation Between Siamgas and HANSOH PHARMAC
Can any of the company-specific risk be diversified away by investing in both Siamgas and HANSOH PHARMAC 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 HANSOH PHARMAC 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 HANSOH PHARMAC HD 00001, you can compare the effects of market volatilities on Siamgas and HANSOH PHARMAC 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 HANSOH PHARMAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and HANSOH PHARMAC.
Diversification Opportunities for Siamgas and HANSOH PHARMAC
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Siamgas and HANSOH is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and HANSOH PHARMAC HD 00001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANSOH PHARMAC HD 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 HANSOH PHARMAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANSOH PHARMAC HD has no effect on the direction of Siamgas i.e., Siamgas and HANSOH PHARMAC go up and down completely randomly.
Pair Corralation between Siamgas and HANSOH PHARMAC
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 0.35 times more return on investment than HANSOH PHARMAC. However, Siamgas And Petrochemicals is 2.86 times less risky than HANSOH PHARMAC. It trades about 0.25 of its potential returns per unit of risk. HANSOH PHARMAC HD 00001 is currently generating about -0.08 per unit of risk. If you would invest 17.00 in Siamgas And Petrochemicals on October 15, 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. HANSOH PHARMAC HD 00001
Performance |
| Timeline |
| Siamgas And Petroche |
| HANSOH PHARMAC HD |
Siamgas and HANSOH PHARMAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and HANSOH PHARMAC
The main advantage of trading using opposite Siamgas and HANSOH PHARMAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, HANSOH PHARMAC 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 HANSOH PHARMAC will offset losses from the drop in HANSOH PHARMAC's long position.| Siamgas vs. SOUTHWEST AIRLINES | Siamgas vs. Astral Foods Limited | Siamgas vs. COFCO Joycome Foods | Siamgas vs. Aegean Airlines SA |
| HANSOH PHARMAC vs. Sanyo Chemical Industries | HANSOH PHARMAC vs. Siamgas And Petrochemicals | HANSOH PHARMAC vs. China BlueChemical | HANSOH PHARMAC vs. KINGBOARD CHEMICAL |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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