Correlation Between Siamgas and Jupiter Fund
Can any of the company-specific risk be diversified away by investing in both Siamgas and Jupiter Fund 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 Jupiter Fund 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 Jupiter Fund Management, you can compare the effects of market volatilities on Siamgas and Jupiter Fund 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 Jupiter Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Jupiter Fund.
Diversification Opportunities for Siamgas and Jupiter Fund
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Siamgas and Jupiter is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Jupiter Fund Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jupiter Fund Management 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 Jupiter Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jupiter Fund Management has no effect on the direction of Siamgas i.e., Siamgas and Jupiter Fund go up and down completely randomly.
Pair Corralation between Siamgas and Jupiter Fund
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 2.24 times more return on investment than Jupiter Fund. However, Siamgas is 2.24 times more volatile than Jupiter Fund Management. It trades about -0.02 of its potential returns per unit of risk. Jupiter Fund Management is currently generating about -0.11 per unit of risk. If you would invest 19.00 in Siamgas And Petrochemicals on August 30, 2024 and sell it today you would lose (1.00) from holding Siamgas And Petrochemicals or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. Jupiter Fund Management
Performance |
| Timeline |
| Siamgas And Petroche |
| Jupiter Fund Management |
Siamgas and Jupiter Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Jupiter Fund
The main advantage of trading using opposite Siamgas and Jupiter Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Jupiter Fund 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 Jupiter Fund will offset losses from the drop in Jupiter Fund's long position.The idea behind Siamgas And Petrochemicals and Jupiter Fund Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Jupiter Fund vs. Ribbon Communications | Jupiter Fund vs. Shenandoah Telecommunications | Jupiter Fund vs. KB HOME | Jupiter Fund vs. Zoom Video Communications |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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