Correlation Between Siamgas and TITAN MACHINERY
Can any of the company-specific risk be diversified away by investing in both Siamgas and TITAN MACHINERY 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 TITAN MACHINERY 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 TITAN MACHINERY, you can compare the effects of market volatilities on Siamgas and TITAN MACHINERY 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 TITAN MACHINERY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and TITAN MACHINERY.
Diversification Opportunities for Siamgas and TITAN MACHINERY
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Siamgas and TITAN is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and TITAN MACHINERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TITAN MACHINERY 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 TITAN MACHINERY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TITAN MACHINERY has no effect on the direction of Siamgas i.e., Siamgas and TITAN MACHINERY go up and down completely randomly.
Pair Corralation between Siamgas and TITAN MACHINERY
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 1.77 times more return on investment than TITAN MACHINERY. However, Siamgas is 1.77 times more volatile than TITAN MACHINERY. It trades about 0.11 of its potential returns per unit of risk. TITAN MACHINERY is currently generating about -0.07 per unit of risk. If you would invest 19.00 in Siamgas And Petrochemicals on December 1, 2024 and sell it today you would earn a total of 2.00 from holding Siamgas And Petrochemicals or generate 10.53% 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. TITAN MACHINERY
Performance |
| Timeline |
| Siamgas And Petroche |
| TITAN MACHINERY |
Siamgas and TITAN MACHINERY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and TITAN MACHINERY
The main advantage of trading using opposite Siamgas and TITAN MACHINERY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, TITAN MACHINERY 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 TITAN MACHINERY will offset losses from the drop in TITAN MACHINERY's long position.| Siamgas vs. UNIQA INSURANCE GR | Siamgas vs. UMC Electronics Co | Siamgas vs. REVO INSURANCE SPA | Siamgas vs. Sabre Insurance Group |
| TITAN MACHINERY vs. Urban Outfitters | TITAN MACHINERY vs. Transport International Holdings | TITAN MACHINERY vs. PARKEN SPORT ENT | TITAN MACHINERY vs. Singapore Telecommunications Limited |
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.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |