Correlation Between Siamgas and Granite Construction
Can any of the company-specific risk be diversified away by investing in both Siamgas and Granite Construction 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 Granite Construction 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 Granite Construction, you can compare the effects of market volatilities on Siamgas and Granite Construction 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 Granite Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Granite Construction.
Diversification Opportunities for Siamgas and Granite Construction
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siamgas and Granite is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Granite Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite Construction 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 Granite Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite Construction has no effect on the direction of Siamgas i.e., Siamgas and Granite Construction go up and down completely randomly.
Pair Corralation between Siamgas and Granite Construction
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 4.38 times more return on investment than Granite Construction. However, Siamgas is 4.38 times more volatile than Granite Construction. It trades about 0.11 of its potential returns per unit of risk. Granite Construction is currently generating about -0.36 per unit of risk. If you would invest 19.00 in Siamgas And Petrochemicals on December 1, 2024 and sell it today you would earn a total of 2.00 from holding Siamgas And Petrochemicals or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. Granite Construction
Performance |
| Timeline |
| Siamgas And Petroche |
| Granite Construction |
Siamgas and Granite Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Granite Construction
The main advantage of trading using opposite Siamgas and Granite Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Granite Construction 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 Granite Construction will offset losses from the drop in Granite Construction's long position.| Siamgas vs. UNIQA INSURANCE GR | Siamgas vs. UMC Electronics Co | Siamgas vs. REVO INSURANCE SPA | Siamgas vs. Sabre Insurance Group |
| Granite Construction vs. Hemisphere Energy Corp | Granite Construction vs. COMPUTER MODELLING | Granite Construction vs. Ebro Foods SA | Granite Construction vs. Ribbon Communications |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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