Correlation Between Siamgas and MUTUIONLINE
Can any of the company-specific risk be diversified away by investing in both Siamgas and MUTUIONLINE 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 MUTUIONLINE 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 MUTUIONLINE, you can compare the effects of market volatilities on Siamgas and MUTUIONLINE 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 MUTUIONLINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and MUTUIONLINE.
Diversification Opportunities for Siamgas and MUTUIONLINE
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siamgas and MUTUIONLINE is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and MUTUIONLINE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MUTUIONLINE 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 MUTUIONLINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MUTUIONLINE has no effect on the direction of Siamgas i.e., Siamgas and MUTUIONLINE go up and down completely randomly.
Pair Corralation between Siamgas and MUTUIONLINE
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 2.87 times more return on investment than MUTUIONLINE. However, Siamgas is 2.87 times more volatile than MUTUIONLINE. It trades about 0.15 of its potential returns per unit of risk. MUTUIONLINE is currently generating about -0.01 per unit of risk. If you would invest 19.00 in Siamgas And Petrochemicals on November 28, 2024 and sell it today you would earn a total of 3.00 from holding Siamgas And Petrochemicals or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. MUTUIONLINE
Performance |
| Timeline |
| Siamgas And Petroche |
| MUTUIONLINE |
Siamgas and MUTUIONLINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and MUTUIONLINE
The main advantage of trading using opposite Siamgas and MUTUIONLINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, MUTUIONLINE 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 MUTUIONLINE will offset losses from the drop in MUTUIONLINE's long position.| Siamgas vs. Norwegian Air Shuttle | Siamgas vs. Corsair Gaming | Siamgas vs. BE Semiconductor Industries | Siamgas vs. Enter Air SA |
| MUTUIONLINE vs. ANGLO ASIAN MINING | MUTUIONLINE vs. Corsair Gaming | MUTUIONLINE vs. Yanzhou Coal Mining | MUTUIONLINE vs. Eurasia Mining Plc |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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