Correlation Between Siamgas and MAGIC SOFTWARE
Can any of the company-specific risk be diversified away by investing in both Siamgas and MAGIC SOFTWARE 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 MAGIC SOFTWARE 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 MAGIC SOFTWARE ENTR, you can compare the effects of market volatilities on Siamgas and MAGIC SOFTWARE 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 MAGIC SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and MAGIC SOFTWARE.
Diversification Opportunities for Siamgas and MAGIC SOFTWARE
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siamgas and MAGIC is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and MAGIC SOFTWARE ENTR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MAGIC SOFTWARE ENTR 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 MAGIC SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MAGIC SOFTWARE ENTR has no effect on the direction of Siamgas i.e., Siamgas and MAGIC SOFTWARE go up and down completely randomly.
Pair Corralation between Siamgas and MAGIC SOFTWARE
If you would invest 1,120 in MAGIC SOFTWARE ENTR on October 23, 2024 and sell it today you would earn a total of 70.00 from holding MAGIC SOFTWARE ENTR or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. MAGIC SOFTWARE ENTR
Performance |
| Timeline |
| Siamgas And Petroche |
| MAGIC SOFTWARE ENTR |
Siamgas and MAGIC SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and MAGIC SOFTWARE
The main advantage of trading using opposite Siamgas and MAGIC SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, MAGIC SOFTWARE 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 MAGIC SOFTWARE will offset losses from the drop in MAGIC SOFTWARE's long position.| Siamgas vs. Sekisui Chemical Co | Siamgas vs. Mitsubishi Gas Chemical | Siamgas vs. GOODYEAR T RUBBER | Siamgas vs. Applied Materials |
| MAGIC SOFTWARE vs. DATAGROUP SE | MAGIC SOFTWARE vs. Stewart Information Services | MAGIC SOFTWARE vs. Datadog | MAGIC SOFTWARE vs. CarsalesCom |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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