Correlation Between Siamgas and FIRST SAVINGS
Can any of the company-specific risk be diversified away by investing in both Siamgas and FIRST SAVINGS 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 FIRST SAVINGS 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 FIRST SAVINGS FINL, you can compare the effects of market volatilities on Siamgas and FIRST SAVINGS 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 FIRST SAVINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and FIRST SAVINGS.
Diversification Opportunities for Siamgas and FIRST SAVINGS
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siamgas and FIRST is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and FIRST SAVINGS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST SAVINGS FINL 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 FIRST SAVINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST SAVINGS FINL has no effect on the direction of Siamgas i.e., Siamgas and FIRST SAVINGS go up and down completely randomly.
Pair Corralation between Siamgas and FIRST SAVINGS
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 0.7 times more return on investment than FIRST SAVINGS. However, Siamgas And Petrochemicals is 1.43 times less risky than FIRST SAVINGS. It trades about 0.01 of its potential returns per unit of risk. FIRST SAVINGS FINL is currently generating about -0.14 per unit of risk. If you would invest 18.00 in Siamgas And Petrochemicals on October 14, 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. FIRST SAVINGS FINL
Performance |
| Timeline |
| Siamgas And Petroche |
| FIRST SAVINGS FINL |
Siamgas and FIRST SAVINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and FIRST SAVINGS
The main advantage of trading using opposite Siamgas and FIRST SAVINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, FIRST SAVINGS 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 FIRST SAVINGS will offset losses from the drop in FIRST SAVINGS's long position.| Siamgas vs. SOUTHWEST AIRLINES | Siamgas vs. Astral Foods Limited | Siamgas vs. COFCO Joycome Foods | Siamgas vs. Aegean Airlines SA |
| FIRST SAVINGS vs. Amkor Technology | FIRST SAVINGS vs. AAC TECHNOLOGHLDGADR | FIRST SAVINGS vs. GLG LIFE TECH | FIRST SAVINGS vs. Easy Software AG |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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