Correlation Between Siamgas and LIFEWAY FOODS
Can any of the company-specific risk be diversified away by investing in both Siamgas and LIFEWAY FOODS 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 LIFEWAY FOODS 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 LIFEWAY FOODS, you can compare the effects of market volatilities on Siamgas and LIFEWAY FOODS 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 LIFEWAY FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and LIFEWAY FOODS.
Diversification Opportunities for Siamgas and LIFEWAY FOODS
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siamgas and LIFEWAY is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and LIFEWAY FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LIFEWAY FOODS 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 LIFEWAY FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LIFEWAY FOODS has no effect on the direction of Siamgas i.e., Siamgas and LIFEWAY FOODS go up and down completely randomly.
Pair Corralation between Siamgas and LIFEWAY FOODS
Assuming the 90 days trading horizon Siamgas is expected to generate 1.45 times less return on investment than LIFEWAY FOODS. In addition to that, Siamgas is 1.21 times more volatile than LIFEWAY FOODS. It trades about 0.04 of its total potential returns per unit of risk. LIFEWAY FOODS is currently generating about 0.07 per unit of volatility. If you would invest 605.00 in LIFEWAY FOODS on August 24, 2024 and sell it today you would earn a total of 1,695 from holding LIFEWAY FOODS or generate 280.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. LIFEWAY FOODS
Performance |
| Timeline |
| Siamgas And Petroche |
| LIFEWAY FOODS |
Siamgas and LIFEWAY FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and LIFEWAY FOODS
The main advantage of trading using opposite Siamgas and LIFEWAY FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, LIFEWAY FOODS 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 LIFEWAY FOODS will offset losses from the drop in LIFEWAY FOODS's long position.| Siamgas vs. Cogent Communications Holdings | Siamgas vs. NH HOTEL GROUP | Siamgas vs. Playa Hotels Resorts | Siamgas vs. Taiwan Semiconductor Manufacturing |
| LIFEWAY FOODS vs. Compugroup Medical SE | LIFEWAY FOODS vs. Microbot Medical | LIFEWAY FOODS vs. MACOM Technology Solutions | LIFEWAY FOODS vs. Siamgas And Petrochemicals |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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