Correlation Between Siamgas and MCEWEN MINING
Can any of the company-specific risk be diversified away by investing in both Siamgas and MCEWEN MINING 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 MCEWEN MINING 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 MCEWEN MINING INC, you can compare the effects of market volatilities on Siamgas and MCEWEN MINING 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 MCEWEN MINING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and MCEWEN MINING.
Diversification Opportunities for Siamgas and MCEWEN MINING
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siamgas and MCEWEN is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and MCEWEN MINING INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCEWEN MINING INC 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 MCEWEN MINING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCEWEN MINING INC has no effect on the direction of Siamgas i.e., Siamgas and MCEWEN MINING go up and down completely randomly.
Pair Corralation between Siamgas and MCEWEN MINING
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 1.84 times more return on investment than MCEWEN MINING. However, Siamgas is 1.84 times more volatile than MCEWEN MINING INC. It trades about 0.04 of its potential returns per unit of risk. MCEWEN MINING INC is currently generating about 0.04 per unit of risk. If you would invest 11.00 in Siamgas And Petrochemicals on August 24, 2024 and sell it today you would earn a total of 7.00 from holding Siamgas And Petrochemicals or generate 63.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. MCEWEN MINING INC
Performance |
| Timeline |
| Siamgas And Petroche |
| MCEWEN MINING INC |
Siamgas and MCEWEN MINING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and MCEWEN MINING
The main advantage of trading using opposite Siamgas and MCEWEN MINING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, MCEWEN MINING 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 MCEWEN MINING will offset losses from the drop in MCEWEN MINING's long position.| Siamgas vs. Cogent Communications Holdings | Siamgas vs. NH HOTEL GROUP | Siamgas vs. Playa Hotels Resorts | Siamgas vs. Taiwan Semiconductor Manufacturing |
| MCEWEN MINING vs. Superior Plus Corp | MCEWEN MINING vs. NMI Holdings | MCEWEN MINING vs. Origin Agritech | MCEWEN MINING vs. SIVERS SEMICONDUCTORS AB |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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