Correlation Between Siamgas and COVIVIO HOTELS
Can any of the company-specific risk be diversified away by investing in both Siamgas and COVIVIO HOTELS 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 COVIVIO HOTELS 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 COVIVIO HOTELS INH, you can compare the effects of market volatilities on Siamgas and COVIVIO HOTELS 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 COVIVIO HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and COVIVIO HOTELS.
Diversification Opportunities for Siamgas and COVIVIO HOTELS
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siamgas and COVIVIO is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and COVIVIO HOTELS INH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COVIVIO HOTELS INH 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 COVIVIO HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COVIVIO HOTELS INH has no effect on the direction of Siamgas i.e., Siamgas and COVIVIO HOTELS go up and down completely randomly.
Pair Corralation between Siamgas and COVIVIO HOTELS
Assuming the 90 days trading horizon Siamgas is expected to generate 22.61 times less return on investment than COVIVIO HOTELS. But when comparing it to its historical volatility, Siamgas And Petrochemicals is 1.06 times less risky than COVIVIO HOTELS. It trades about 0.01 of its potential returns per unit of risk. COVIVIO HOTELS INH is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,860 in COVIVIO HOTELS INH on October 14, 2024 and sell it today you would earn a total of 135.00 from holding COVIVIO HOTELS INH or generate 7.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. COVIVIO HOTELS INH
Performance |
| Timeline |
| Siamgas And Petroche |
| COVIVIO HOTELS INH |
Siamgas and COVIVIO HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and COVIVIO HOTELS
The main advantage of trading using opposite Siamgas and COVIVIO HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, COVIVIO HOTELS 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 COVIVIO HOTELS will offset losses from the drop in COVIVIO HOTELS's long position.| Siamgas vs. SOUTHWEST AIRLINES | Siamgas vs. Astral Foods Limited | Siamgas vs. COFCO Joycome Foods | Siamgas vs. Aegean Airlines SA |
| COVIVIO HOTELS vs. Cleanaway Waste Management | COVIVIO HOTELS vs. Siamgas And Petrochemicals | COVIVIO HOTELS vs. Soken Chemical Engineering | COVIVIO HOTELS vs. X FAB Silicon Foundries |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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