Correlation Between Siamgas and Vulcan Materials
Can any of the company-specific risk be diversified away by investing in both Siamgas and Vulcan Materials 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 Vulcan Materials 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 Vulcan Materials, you can compare the effects of market volatilities on Siamgas and Vulcan Materials 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 Vulcan Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Vulcan Materials.
Diversification Opportunities for Siamgas and Vulcan Materials
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siamgas and Vulcan is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Vulcan Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vulcan Materials 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 Vulcan Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vulcan Materials has no effect on the direction of Siamgas i.e., Siamgas and Vulcan Materials go up and down completely randomly.
Pair Corralation between Siamgas and Vulcan Materials
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 1.56 times more return on investment than Vulcan Materials. However, Siamgas is 1.56 times more volatile than Vulcan Materials. It trades about 0.17 of its potential returns per unit of risk. Vulcan Materials is currently generating about -0.06 per unit of risk. If you would invest 17.00 in Siamgas And Petrochemicals on October 30, 2024 and sell it today you would earn a total of 2.00 from holding Siamgas And Petrochemicals or generate 11.76% 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. Vulcan Materials
Performance |
| Timeline |
| Siamgas And Petroche |
| Vulcan Materials |
Siamgas and Vulcan Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Vulcan Materials
The main advantage of trading using opposite Siamgas and Vulcan Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Vulcan Materials 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 Vulcan Materials will offset losses from the drop in Vulcan Materials' long position.| Siamgas vs. FIREWEED METALS P | Siamgas vs. Harmony Gold Mining | Siamgas vs. PKSHA TECHNOLOGY INC | Siamgas vs. FANDIFI TECHNOLOGY P |
| Vulcan Materials vs. UNIVMUSIC GRPADR050 | Vulcan Materials vs. Alaska Air Group | Vulcan Materials vs. China Resources Beer | Vulcan Materials vs. SOGECLAIR SA INH |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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