Correlation Between Siamgas and Ramsay Générale
Can any of the company-specific risk be diversified away by investing in both Siamgas and Ramsay Générale 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 Ramsay Générale 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 Ramsay Gnrale de, you can compare the effects of market volatilities on Siamgas and Ramsay Générale 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 Ramsay Générale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Ramsay Générale.
Diversification Opportunities for Siamgas and Ramsay Générale
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siamgas and Ramsay is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Ramsay Gnrale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramsay Gnrale de 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 Ramsay Générale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramsay Gnrale de has no effect on the direction of Siamgas i.e., Siamgas and Ramsay Générale go up and down completely randomly.
Pair Corralation between Siamgas and Ramsay Générale
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 1.43 times more return on investment than Ramsay Générale. However, Siamgas is 1.43 times more volatile than Ramsay Gnrale de. It trades about -0.06 of its potential returns per unit of risk. Ramsay Gnrale de is currently generating about -0.19 per unit of risk. If you would invest 19.00 in Siamgas And Petrochemicals on August 31, 2024 and sell it today you would lose (2.00) from holding Siamgas And Petrochemicals or give up 10.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.78% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. Ramsay Gnrale de
Performance |
| Timeline |
| Siamgas And Petroche |
| Ramsay Gnrale de |
Siamgas and Ramsay Générale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Ramsay Générale
The main advantage of trading using opposite Siamgas and Ramsay Générale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Ramsay Générale 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 Ramsay Générale will offset losses from the drop in Ramsay Générale's long position.| Siamgas vs. Thai Beverage Public | Siamgas vs. CITY OFFICE REIT | Siamgas vs. BJs Restaurants | Siamgas vs. Performance Food Group |
| Ramsay Générale vs. GRIFFIN MINING LTD | Ramsay Générale vs. NISSIN FOODS HLDGS | Ramsay Générale vs. Evolution Mining Limited | Ramsay Générale vs. LIFEWAY FOODS |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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