Correlation Between Siamgas and Globe Trade
Can any of the company-specific risk be diversified away by investing in both Siamgas and Globe Trade 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 Globe Trade 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 Globe Trade Centre, you can compare the effects of market volatilities on Siamgas and Globe Trade 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 Globe Trade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Globe Trade.
Diversification Opportunities for Siamgas and Globe Trade
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Siamgas and Globe is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Globe Trade Centre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globe Trade Centre 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 Globe Trade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globe Trade Centre has no effect on the direction of Siamgas i.e., Siamgas and Globe Trade go up and down completely randomly.
Pair Corralation between Siamgas and Globe Trade
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 14.65 times more return on investment than Globe Trade. However, Siamgas is 14.65 times more volatile than Globe Trade Centre. It trades about 0.01 of its potential returns per unit of risk. Globe Trade Centre is currently generating about -0.22 per unit of risk. If you would invest 18.00 in Siamgas And Petrochemicals on August 27, 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 | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Siamgas And Petrochemicals vs. Globe Trade Centre
Performance |
Timeline |
Siamgas And Petroche |
Globe Trade Centre |
Siamgas and Globe Trade Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Siamgas and Globe Trade
The main advantage of trading using opposite Siamgas and Globe Trade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Globe Trade 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 Globe Trade will offset losses from the drop in Globe Trade's long position.The idea behind Siamgas And Petrochemicals and Globe Trade Centre 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.Globe Trade vs. IMAGIN MEDICAL INC | Globe Trade vs. Geratherm Medical AG | Globe Trade vs. EPSILON HEALTHCARE LTD | Globe Trade vs. Diamyd Medical AB |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |