Correlation Between Siamgas and Grenke AG
Can any of the company-specific risk be diversified away by investing in both Siamgas and Grenke AG 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 Grenke AG 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 Grenke AG, you can compare the effects of market volatilities on Siamgas and Grenke AG 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 Grenke AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Grenke AG.
Diversification Opportunities for Siamgas and Grenke AG
Modest diversification
The 3 months correlation between Siamgas and Grenke is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Grenke AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grenke AG 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 Grenke AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grenke AG has no effect on the direction of Siamgas i.e., Siamgas and Grenke AG go up and down completely randomly.
Pair Corralation between Siamgas and Grenke AG
Assuming the 90 days trading horizon Siamgas is expected to generate 13.63 times less return on investment than Grenke AG. But when comparing it to its historical volatility, Siamgas And Petrochemicals is 1.07 times less risky than Grenke AG. It trades about 0.01 of its potential returns per unit of risk. Grenke AG is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1,572 in Grenke AG on October 10, 2024 and sell it today you would earn a total of 62.00 from holding Grenke AG or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. Grenke AG
Performance |
| Timeline |
| Siamgas And Petroche |
| Grenke AG |
Siamgas and Grenke AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Grenke AG
The main advantage of trading using opposite Siamgas and Grenke AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Grenke AG 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 Grenke AG will offset losses from the drop in Grenke AG's long position.| Siamgas vs. China Communications Services | Siamgas vs. Spirent Communications plc | Siamgas vs. Magnachip Semiconductor | Siamgas vs. Taiwan Semiconductor Manufacturing |
| Grenke AG vs. PTT Global Chemical | Grenke AG vs. Siamgas And Petrochemicals | Grenke AG vs. TIANDE CHEMICAL | Grenke AG vs. Silicon Motion Technology |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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