Correlation Between Siamgas and Chevron
Can any of the company-specific risk be diversified away by investing in both Siamgas and Chevron 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 Chevron 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 Chevron, you can compare the effects of market volatilities on Siamgas and Chevron 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 Chevron. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Chevron.
Diversification Opportunities for Siamgas and Chevron
Average diversification
The 3 months correlation between Siamgas and Chevron is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Chevron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chevron 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 Chevron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chevron has no effect on the direction of Siamgas i.e., Siamgas and Chevron go up and down completely randomly.
Pair Corralation between Siamgas and Chevron
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 5.26 times more return on investment than Chevron. However, Siamgas is 5.26 times more volatile than Chevron. It trades about 0.03 of its potential returns per unit of risk. Chevron is currently generating about 0.06 per unit of risk. If you would invest 18.00 in Siamgas And Petrochemicals on September 4, 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. Chevron
Performance |
| Timeline |
| Siamgas And Petroche |
| Chevron |
Siamgas and Chevron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Chevron
The main advantage of trading using opposite Siamgas and Chevron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Chevron 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 Chevron will offset losses from the drop in Chevron's long position.The idea behind Siamgas And Petrochemicals and Chevron 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.| Chevron vs. Aozora Bank | Chevron vs. Dairy Farm International | Chevron vs. Siamgas And Petrochemicals | Chevron vs. Sterling Construction |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |