Correlation Between Siamgas and VIAPLAY GROUP
Can any of the company-specific risk be diversified away by investing in both Siamgas and VIAPLAY 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 VIAPLAY 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 VIAPLAY GROUP AB, you can compare the effects of market volatilities on Siamgas and VIAPLAY 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 VIAPLAY GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and VIAPLAY GROUP.
Diversification Opportunities for Siamgas and VIAPLAY GROUP
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Siamgas and VIAPLAY is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and VIAPLAY GROUP AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VIAPLAY 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 VIAPLAY GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VIAPLAY GROUP AB has no effect on the direction of Siamgas i.e., Siamgas and VIAPLAY GROUP go up and down completely randomly.
Pair Corralation between Siamgas and VIAPLAY GROUP
Assuming the 90 days trading horizon Siamgas is expected to generate 7.16 times less return on investment than VIAPLAY GROUP. But when comparing it to its historical volatility, Siamgas And Petrochemicals is 3.31 times less risky than VIAPLAY GROUP. It trades about 0.03 of its potential returns per unit of risk. VIAPLAY GROUP AB is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 46.00 in VIAPLAY GROUP AB on September 2, 2024 and sell it today you would lose (40.16) from holding VIAPLAY GROUP AB or give up 87.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. VIAPLAY GROUP AB
Performance |
| Timeline |
| Siamgas And Petroche |
| VIAPLAY GROUP AB |
Siamgas and VIAPLAY GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and VIAPLAY GROUP
The main advantage of trading using opposite Siamgas and VIAPLAY GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, VIAPLAY 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 VIAPLAY GROUP will offset losses from the drop in VIAPLAY GROUP's long position.The idea behind Siamgas And Petrochemicals and VIAPLAY GROUP AB 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.| VIAPLAY GROUP vs. Netflix | VIAPLAY GROUP vs. Warner Music Group | VIAPLAY GROUP vs. Superior Plus Corp | VIAPLAY GROUP vs. NMI Holdings |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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