Correlation Between Siamgas and Meta Platforms
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By analyzing existing cross correlation between Siamgas And Petrochemicals and Meta Platforms, you can compare the effects of market volatilities on Siamgas and Meta Platforms 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 Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Meta Platforms.
Diversification Opportunities for Siamgas and Meta Platforms
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Siamgas and Meta is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms 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 Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of Siamgas i.e., Siamgas and Meta Platforms go up and down completely randomly.
Pair Corralation between Siamgas and Meta Platforms
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 4.65 times more return on investment than Meta Platforms. However, Siamgas is 4.65 times more volatile than Meta Platforms. It trades about 0.04 of its potential returns per unit of risk. Meta Platforms is currently generating about 0.11 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. Meta Platforms
Performance |
| Timeline |
| Siamgas And Petroche |
| Meta Platforms |
Siamgas and Meta Platforms Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Meta Platforms
The main advantage of trading using opposite Siamgas and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.The idea behind Siamgas And Petrochemicals and Meta Platforms 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.| Meta Platforms vs. Tri Pointe Homes | Meta Platforms vs. Haier Smart Home | Meta Platforms vs. American Homes 4 | Meta Platforms vs. Neinor Homes SA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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