Correlation Between Siamgas and KOOL2PLAY
Can any of the company-specific risk be diversified away by investing in both Siamgas and KOOL2PLAY 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 KOOL2PLAY 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 KOOL2PLAY SA ZY, you can compare the effects of market volatilities on Siamgas and KOOL2PLAY 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 KOOL2PLAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and KOOL2PLAY.
Diversification Opportunities for Siamgas and KOOL2PLAY
Very weak diversification
The 3 months correlation between Siamgas and KOOL2PLAY is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and KOOL2PLAY SA ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOOL2PLAY SA ZY 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 KOOL2PLAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOOL2PLAY SA ZY has no effect on the direction of Siamgas i.e., Siamgas and KOOL2PLAY go up and down completely randomly.
Pair Corralation between Siamgas and KOOL2PLAY
Assuming the 90 days trading horizon Siamgas is expected to generate 19.57 times less return on investment than KOOL2PLAY. But when comparing it to its historical volatility, Siamgas And Petrochemicals is 1.23 times less risky than KOOL2PLAY. It trades about 0.01 of its potential returns per unit of risk. KOOL2PLAY SA ZY is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 16.00 in KOOL2PLAY SA ZY on September 20, 2024 and sell it today you would earn a total of 2.00 from holding KOOL2PLAY SA ZY or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. KOOL2PLAY SA ZY
Performance |
| Timeline |
| Siamgas And Petroche |
| KOOL2PLAY SA ZY |
Siamgas and KOOL2PLAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and KOOL2PLAY
The main advantage of trading using opposite Siamgas and KOOL2PLAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, KOOL2PLAY 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 KOOL2PLAY will offset losses from the drop in KOOL2PLAY's long position.The idea behind Siamgas And Petrochemicals and KOOL2PLAY SA ZY 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.| KOOL2PLAY vs. ULTRA CLEAN HLDGS | KOOL2PLAY vs. ScanSource | KOOL2PLAY vs. American Eagle Outfitters | KOOL2PLAY vs. Carnegie Clean Energy |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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