Correlation Between Siamgas and GAMING FAC
Can any of the company-specific risk be diversified away by investing in both Siamgas and GAMING FAC 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 GAMING FAC 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 GAMING FAC SA, you can compare the effects of market volatilities on Siamgas and GAMING FAC 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 GAMING FAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and GAMING FAC.
Diversification Opportunities for Siamgas and GAMING FAC
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siamgas and GAMING is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and GAMING FAC SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAMING FAC SA 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 GAMING FAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAMING FAC SA has no effect on the direction of Siamgas i.e., Siamgas and GAMING FAC go up and down completely randomly.
Pair Corralation between Siamgas and GAMING FAC
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 2.38 times more return on investment than GAMING FAC. However, Siamgas is 2.38 times more volatile than GAMING FAC SA. It trades about 0.04 of its potential returns per unit of risk. GAMING FAC SA is currently generating about -0.12 per unit of risk. If you would invest 17.00 in Siamgas And Petrochemicals on September 3, 2024 and sell it today you would earn a total of 1.00 from holding Siamgas And Petrochemicals or generate 5.88% 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. GAMING FAC SA
Performance |
| Timeline |
| Siamgas And Petroche |
| GAMING FAC SA |
Siamgas and GAMING FAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and GAMING FAC
The main advantage of trading using opposite Siamgas and GAMING FAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, GAMING FAC 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 GAMING FAC will offset losses from the drop in GAMING FAC's long position.The idea behind Siamgas And Petrochemicals and GAMING FAC SA 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.| GAMING FAC vs. Nintendo Co | GAMING FAC vs. Nintendo Co | GAMING FAC vs. Sea Limited | GAMING FAC vs. Take Two Interactive Software |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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