Correlation Between Siamgas and THAI BEVERAGE
Can any of the company-specific risk be diversified away by investing in both Siamgas and THAI BEVERAGE 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 THAI BEVERAGE 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 THAI BEVERAGE, you can compare the effects of market volatilities on Siamgas and THAI BEVERAGE 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 THAI BEVERAGE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and THAI BEVERAGE.
Diversification Opportunities for Siamgas and THAI BEVERAGE
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siamgas and THAI is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and THAI BEVERAGE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THAI BEVERAGE 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 THAI BEVERAGE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THAI BEVERAGE has no effect on the direction of Siamgas i.e., Siamgas and THAI BEVERAGE go up and down completely randomly.
Pair Corralation between Siamgas and THAI BEVERAGE
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 3.42 times more return on investment than THAI BEVERAGE. However, Siamgas is 3.42 times more volatile than THAI BEVERAGE. It trades about 0.0 of its potential returns per unit of risk. THAI BEVERAGE is currently generating about -0.05 per unit of risk. If you would invest 18.00 in Siamgas And Petrochemicals on December 8, 2024 and sell it today you would lose (1.00) from holding Siamgas And Petrochemicals or give up 5.56% 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. THAI BEVERAGE
Performance |
| Timeline |
| Siamgas And Petroche |
| THAI BEVERAGE |
Siamgas and THAI BEVERAGE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and THAI BEVERAGE
The main advantage of trading using opposite Siamgas and THAI BEVERAGE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, THAI BEVERAGE 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 THAI BEVERAGE will offset losses from the drop in THAI BEVERAGE's long position.| Siamgas vs. Easy Software AG | Siamgas vs. Microchip Technology Incorporated | Siamgas vs. CARDINAL HEALTH | Siamgas vs. WESANA HEALTH HOLD |
| THAI BEVERAGE vs. Cembra Money Bank | THAI BEVERAGE vs. CSSC Offshore Marine | THAI BEVERAGE vs. Virtu Financial | THAI BEVERAGE vs. JSC Halyk bank |
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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