Correlation Between Siamgas and PLAYMATES TOYS
Can any of the company-specific risk be diversified away by investing in both Siamgas and PLAYMATES TOYS 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 PLAYMATES TOYS 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 PLAYMATES TOYS, you can compare the effects of market volatilities on Siamgas and PLAYMATES TOYS 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 PLAYMATES TOYS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and PLAYMATES TOYS.
Diversification Opportunities for Siamgas and PLAYMATES TOYS
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siamgas and PLAYMATES is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and PLAYMATES TOYS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PLAYMATES TOYS 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 PLAYMATES TOYS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PLAYMATES TOYS has no effect on the direction of Siamgas i.e., Siamgas and PLAYMATES TOYS go up and down completely randomly.
Pair Corralation between Siamgas and PLAYMATES TOYS
Assuming the 90 days trading horizon Siamgas is expected to generate 1.58 times less return on investment than PLAYMATES TOYS. In addition to that, Siamgas is 1.21 times more volatile than PLAYMATES TOYS. It trades about 0.04 of its total potential returns per unit of risk. PLAYMATES TOYS is currently generating about 0.08 per unit of volatility. If you would invest 1.43 in PLAYMATES TOYS on October 13, 2024 and sell it today you would earn a total of 5.17 from holding PLAYMATES TOYS or generate 361.54% 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. PLAYMATES TOYS
Performance |
| Timeline |
| Siamgas And Petroche |
| PLAYMATES TOYS |
Siamgas and PLAYMATES TOYS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and PLAYMATES TOYS
The main advantage of trading using opposite Siamgas and PLAYMATES TOYS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, PLAYMATES TOYS 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 PLAYMATES TOYS will offset losses from the drop in PLAYMATES TOYS's long position.| Siamgas vs. CVW CLEANTECH INC | Siamgas vs. Coor Service Management | Siamgas vs. Easy Software AG | Siamgas vs. PKSHA TECHNOLOGY INC |
| PLAYMATES TOYS vs. Titan Machinery | PLAYMATES TOYS vs. Australian Agricultural | PLAYMATES TOYS vs. LANDSEA GREEN MANAGEMENT | PLAYMATES TOYS vs. Federal Agricultural Mortgage |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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