Correlation Between Siamgas and CLEMONDO GROUP
Can any of the company-specific risk be diversified away by investing in both Siamgas and CLEMONDO GROUP 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 CLEMONDO GROUP 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 CLEMONDO GROUP AB, you can compare the effects of market volatilities on Siamgas and CLEMONDO GROUP 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 CLEMONDO GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and CLEMONDO GROUP.
Diversification Opportunities for Siamgas and CLEMONDO GROUP
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siamgas and CLEMONDO is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and CLEMONDO GROUP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLEMONDO GROUP AB 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 CLEMONDO GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLEMONDO GROUP AB has no effect on the direction of Siamgas i.e., Siamgas and CLEMONDO GROUP go up and down completely randomly.
Pair Corralation between Siamgas and CLEMONDO GROUP
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to under-perform the CLEMONDO GROUP. In addition to that, Siamgas is 1.69 times more volatile than CLEMONDO GROUP AB. It trades about 0.0 of its total potential returns per unit of risk. CLEMONDO GROUP AB is currently generating about 0.07 per unit of volatility. If you would invest 56.00 in CLEMONDO GROUP AB on December 5, 2024 and sell it today you would earn a total of 3.00 from holding CLEMONDO GROUP AB or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 73.81% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. CLEMONDO GROUP AB
Performance |
| Timeline |
| Siamgas And Petroche |
| CLEMONDO GROUP AB |
Risk-Adjusted Performance
OK
Weak | Strong |
Siamgas and CLEMONDO GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and CLEMONDO GROUP
The main advantage of trading using opposite Siamgas and CLEMONDO GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, CLEMONDO GROUP 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 CLEMONDO GROUP will offset losses from the drop in CLEMONDO GROUP's long position.| Siamgas vs. Merit Medical Systems | Siamgas vs. Tower Semiconductor | Siamgas vs. Elmos Semiconductor SE | Siamgas vs. MagnaChip Semiconductor Corp |
| CLEMONDO GROUP vs. GBS Software AG | CLEMONDO GROUP vs. DISTRICT METALS | CLEMONDO GROUP vs. Axway Software SA | CLEMONDO GROUP vs. FORMPIPE SOFTWARE AB |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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