Correlation Between Siamgas and PKSHA TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Siamgas and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY INC, you can compare the effects of market volatilities on Siamgas and PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and PKSHA TECHNOLOGY.
Diversification Opportunities for Siamgas and PKSHA TECHNOLOGY
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siamgas and PKSHA is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and PKSHA TECHNOLOGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PKSHA TECHNOLOGY INC 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 PKSHA TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PKSHA TECHNOLOGY INC has no effect on the direction of Siamgas i.e., Siamgas and PKSHA TECHNOLOGY go up and down completely randomly.
Pair Corralation between Siamgas and PKSHA TECHNOLOGY
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 0.84 times more return on investment than PKSHA TECHNOLOGY. However, Siamgas And Petrochemicals is 1.19 times less risky than PKSHA TECHNOLOGY. It trades about 0.01 of its potential returns per unit of risk. PKSHA TECHNOLOGY INC is currently generating about -0.03 per unit of risk. If you would invest 18.00 in Siamgas And Petrochemicals on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Siamgas And Petrochemicals or generate 0.0% 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. PKSHA TECHNOLOGY INC
Performance |
| Timeline |
| Siamgas And Petroche |
| PKSHA TECHNOLOGY INC |
Siamgas and PKSHA TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and PKSHA TECHNOLOGY
The main advantage of trading using opposite Siamgas and PKSHA TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, PKSHA TECHNOLOGY 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 PKSHA TECHNOLOGY will offset losses from the drop in PKSHA TECHNOLOGY's long position.The idea behind Siamgas And Petrochemicals and PKSHA TECHNOLOGY INC 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.| PKSHA TECHNOLOGY vs. Siamgas And Petrochemicals | PKSHA TECHNOLOGY vs. INTERSHOP Communications Aktiengesellschaft | PKSHA TECHNOLOGY vs. AIR PRODCHEMICALS | PKSHA TECHNOLOGY vs. SHIN ETSU 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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