Correlation Between Siamgas and G III
Can any of the company-specific risk be diversified away by investing in both Siamgas and G III 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 G III 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 G III APPAREL GROUP, you can compare the effects of market volatilities on Siamgas and G III 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 G III. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and G III.
Diversification Opportunities for Siamgas and G III
Very good diversification
The 3 months correlation between Siamgas and GI4 is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and G III APPAREL GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on G III APPAREL 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 G III. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of G III APPAREL has no effect on the direction of Siamgas i.e., Siamgas and G III go up and down completely randomly.
Pair Corralation between Siamgas and G III
Assuming the 90 days trading horizon Siamgas is expected to generate 23.44 times less return on investment than G III. But when comparing it to its historical volatility, Siamgas And Petrochemicals is 1.23 times less risky than G III. It trades about 0.01 of its potential returns per unit of risk. G III APPAREL GROUP is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,860 in G III APPAREL GROUP on September 18, 2024 and sell it today you would earn a total of 440.00 from holding G III APPAREL GROUP or generate 15.38% 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. G III APPAREL GROUP
Performance |
| Timeline |
| Siamgas And Petroche |
| G III APPAREL |
Siamgas and G III Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and G III
The main advantage of trading using opposite Siamgas and G III positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, G III 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 G III will offset losses from the drop in G III's long position.The idea behind Siamgas And Petrochemicals and G III APPAREL GROUP 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.| G III vs. ScanSource | G III vs. The Boston Beer | G III vs. Siamgas And Petrochemicals | G III vs. Natural Health Trends |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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