Correlation Between Siamgas and PT Bank
Can any of the company-specific risk be diversified away by investing in both Siamgas and PT Bank 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 PT Bank 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 PT Bank Mandiri, you can compare the effects of market volatilities on Siamgas and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and PT Bank.
Diversification Opportunities for Siamgas and PT Bank
Average diversification
The 3 months correlation between Siamgas and PQ9 is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and PT Bank Mandiri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Mandiri 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Mandiri has no effect on the direction of Siamgas i.e., Siamgas and PT Bank go up and down completely randomly.
Pair Corralation between Siamgas and PT Bank
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 0.44 times more return on investment than PT Bank. However, Siamgas And Petrochemicals is 2.28 times less risky than PT Bank. It trades about 0.01 of its potential returns per unit of risk. PT Bank Mandiri is currently generating about -0.11 per unit of risk. If you would invest 18.00 in Siamgas And Petrochemicals on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Siamgas And Petrochemicals or generate 0.0% 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. PT Bank Mandiri
Performance |
| Timeline |
| Siamgas And Petroche |
| PT Bank Mandiri |
Siamgas and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and PT Bank
The main advantage of trading using opposite Siamgas and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| Siamgas vs. Japan Tobacco | Siamgas vs. Cass Information Systems | Siamgas vs. DATAGROUP SE | Siamgas vs. Aegean Airlines SA |
| PT Bank vs. China Merchants Bank | PT Bank vs. HDFC Bank Limited | PT Bank vs. ICICI Bank Limited | PT Bank vs. PT Bank Central |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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