Correlation Between Siamgas and Tanaka CoLtd
Can any of the company-specific risk be diversified away by investing in both Siamgas and Tanaka CoLtd 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 Tanaka CoLtd 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 Tanaka CoLtd, you can compare the effects of market volatilities on Siamgas and Tanaka CoLtd 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 Tanaka CoLtd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Tanaka CoLtd.
Diversification Opportunities for Siamgas and Tanaka CoLtd
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Siamgas and Tanaka is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Tanaka CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanaka CoLtd 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 Tanaka CoLtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanaka CoLtd has no effect on the direction of Siamgas i.e., Siamgas and Tanaka CoLtd go up and down completely randomly.
Pair Corralation between Siamgas and Tanaka CoLtd
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 3.79 times more return on investment than Tanaka CoLtd. However, Siamgas is 3.79 times more volatile than Tanaka CoLtd. It trades about 0.06 of its potential returns per unit of risk. Tanaka CoLtd is currently generating about 0.02 per unit of risk. If you would invest 8.46 in Siamgas And Petrochemicals on September 12, 2024 and sell it today you would earn a total of 9.54 from holding Siamgas And Petrochemicals or generate 112.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. Tanaka CoLtd
Performance |
| Timeline |
| Siamgas And Petroche |
| Tanaka CoLtd |
Siamgas and Tanaka CoLtd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Tanaka CoLtd
The main advantage of trading using opposite Siamgas and Tanaka CoLtd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Tanaka CoLtd 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 Tanaka CoLtd will offset losses from the drop in Tanaka CoLtd's long position.| Siamgas vs. Singapore Reinsurance | Siamgas vs. PARKEN Sport Entertainment | Siamgas vs. PROSIEBENSAT1 MEDIADR4 | Siamgas vs. MSAD INSURANCE |
| Tanaka CoLtd vs. Perseus Mining Limited | Tanaka CoLtd vs. Gaztransport Technigaz SA | Tanaka CoLtd vs. Gold Road Resources | Tanaka CoLtd vs. ScanSource |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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