Correlation Between Siamgas and Peak Resources
Can any of the company-specific risk be diversified away by investing in both Siamgas and Peak Resources 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 Peak Resources 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 Peak Resources Limited, you can compare the effects of market volatilities on Siamgas and Peak Resources 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 Peak Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Peak Resources.
Diversification Opportunities for Siamgas and Peak Resources
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siamgas and Peak is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Peak Resources Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peak Resources 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 Peak Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peak Resources has no effect on the direction of Siamgas i.e., Siamgas and Peak Resources go up and down completely randomly.
Pair Corralation between Siamgas and Peak Resources
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 0.83 times more return on investment than Peak Resources. However, Siamgas And Petrochemicals is 1.2 times less risky than Peak Resources. It trades about 0.03 of its potential returns per unit of risk. Peak Resources Limited is currently generating about -0.01 per unit of risk. If you would invest 18.00 in Siamgas And Petrochemicals on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Siamgas And Petrochemicals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.64% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. Peak Resources Limited
Performance |
| Timeline |
| Siamgas And Petroche |
| Peak Resources |
Siamgas and Peak Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Peak Resources
The main advantage of trading using opposite Siamgas and Peak Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Peak Resources 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 Peak Resources will offset losses from the drop in Peak Resources' long position.The idea behind Siamgas And Petrochemicals and Peak Resources Limited 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.| Peak Resources vs. Siamgas And Petrochemicals | Peak Resources vs. Public Storage | Peak Resources vs. Casio Computer CoLtd | Peak Resources vs. Datang International Power |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |