Correlation Between Siamgas and Brinks
Can any of the company-specific risk be diversified away by investing in both Siamgas and Brinks 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 Brinks 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 The Brinks, you can compare the effects of market volatilities on Siamgas and Brinks 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 Brinks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Brinks.
Diversification Opportunities for Siamgas and Brinks
Average diversification
The 3 months correlation between Siamgas and Brinks is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and The Brinks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brinks 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 Brinks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brinks has no effect on the direction of Siamgas i.e., Siamgas and Brinks go up and down completely randomly.
Pair Corralation between Siamgas and Brinks
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 0.91 times more return on investment than Brinks. However, Siamgas And Petrochemicals is 1.09 times less risky than Brinks. It trades about 0.24 of its potential returns per unit of risk. The Brinks is currently generating about -0.1 per unit of risk. If you would invest 17.00 in Siamgas And Petrochemicals on October 17, 2024 and sell it today you would earn a total of 1.00 from holding Siamgas And Petrochemicals or generate 5.88% 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. The Brinks
Performance |
| Timeline |
| Siamgas And Petroche |
| Brinks |
Siamgas and Brinks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Brinks
The main advantage of trading using opposite Siamgas and Brinks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Brinks 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 Brinks will offset losses from the drop in Brinks' long position.| Siamgas vs. ANTA SPORTS PRODUCT | Siamgas vs. ePlay Digital | Siamgas vs. Easy Software AG | Siamgas vs. Playtech plc |
| Brinks vs. Fukuyama Transporting Co | Brinks vs. Siamgas And Petrochemicals | Brinks vs. Uber Technologies | Brinks vs. Sunny Optical Technology |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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