Correlation Between Siamgas and Reinsurance Group
Can any of the company-specific risk be diversified away by investing in both Siamgas and Reinsurance 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 Reinsurance 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 Reinsurance Group of, you can compare the effects of market volatilities on Siamgas and Reinsurance 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 Reinsurance Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Reinsurance Group.
Diversification Opportunities for Siamgas and Reinsurance Group
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siamgas and Reinsurance is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Reinsurance Group of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reinsurance Group 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 Reinsurance Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reinsurance Group has no effect on the direction of Siamgas i.e., Siamgas and Reinsurance Group go up and down completely randomly.
Pair Corralation between Siamgas and Reinsurance Group
Assuming the 90 days trading horizon Siamgas is expected to generate 22.93 times less return on investment than Reinsurance Group. In addition to that, Siamgas is 1.11 times more volatile than Reinsurance Group of. It trades about 0.01 of its total potential returns per unit of risk. Reinsurance Group of is currently generating about 0.24 per unit of volatility. If you would invest 19,800 in Reinsurance Group of on October 13, 2024 and sell it today you would earn a total of 1,400 from holding Reinsurance Group of or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. Reinsurance Group of
Performance |
| Timeline |
| Siamgas And Petroche |
| Reinsurance Group |
Siamgas and Reinsurance Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Reinsurance Group
The main advantage of trading using opposite Siamgas and Reinsurance Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Reinsurance 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 Reinsurance Group will offset losses from the drop in Reinsurance Group's long position.| Siamgas vs. CVW CLEANTECH INC | Siamgas vs. Coor Service Management | Siamgas vs. Easy Software AG | Siamgas vs. PKSHA TECHNOLOGY INC |
| Reinsurance Group vs. X FAB Silicon Foundries | Reinsurance Group vs. China BlueChemical | Reinsurance Group vs. Siamgas And Petrochemicals | Reinsurance Group vs. SAN MIGUEL BREWERY |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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