Correlation Between Siamgas and SAN MIGUEL
Can any of the company-specific risk be diversified away by investing in both Siamgas and SAN MIGUEL 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 SAN MIGUEL 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 SAN MIGUEL BREWERY, you can compare the effects of market volatilities on Siamgas and SAN MIGUEL 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 SAN MIGUEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and SAN MIGUEL.
Diversification Opportunities for Siamgas and SAN MIGUEL
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Siamgas and SAN is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and SAN MIGUEL BREWERY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAN MIGUEL BREWERY 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 SAN MIGUEL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAN MIGUEL BREWERY has no effect on the direction of Siamgas i.e., Siamgas and SAN MIGUEL go up and down completely randomly.
Pair Corralation between Siamgas and SAN MIGUEL
Assuming the 90 days trading horizon Siamgas is expected to generate 1.2 times less return on investment than SAN MIGUEL. In addition to that, Siamgas is 1.12 times more volatile than SAN MIGUEL BREWERY. It trades about 0.04 of its total potential returns per unit of risk. SAN MIGUEL BREWERY is currently generating about 0.06 per unit of volatility. If you would invest 4.24 in SAN MIGUEL BREWERY on October 13, 2024 and sell it today you would earn a total of 5.51 from holding SAN MIGUEL BREWERY or generate 129.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. SAN MIGUEL BREWERY
Performance |
| Timeline |
| Siamgas And Petroche |
| SAN MIGUEL BREWERY |
Siamgas and SAN MIGUEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and SAN MIGUEL
The main advantage of trading using opposite Siamgas and SAN MIGUEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, SAN MIGUEL 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 SAN MIGUEL will offset losses from the drop in SAN MIGUEL's long position.| Siamgas vs. CVW CLEANTECH INC | Siamgas vs. Coor Service Management | Siamgas vs. Easy Software AG | Siamgas vs. PKSHA TECHNOLOGY INC |
| SAN MIGUEL vs. GRUPO CARSO A1 | SAN MIGUEL vs. Siamgas And Petrochemicals | SAN MIGUEL vs. Magic Software Enterprises | SAN MIGUEL vs. VITEC SOFTWARE GROUP |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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