Correlation Between Siamgas and Sinopharm Group
Can any of the company-specific risk be diversified away by investing in both Siamgas and Sinopharm 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 Sinopharm 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 Sinopharm Group Co, you can compare the effects of market volatilities on Siamgas and Sinopharm 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 Sinopharm Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Sinopharm Group.
Diversification Opportunities for Siamgas and Sinopharm Group
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Siamgas and Sinopharm is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Sinopharm Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopharm 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 Sinopharm Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopharm Group has no effect on the direction of Siamgas i.e., Siamgas and Sinopharm Group go up and down completely randomly.
Pair Corralation between Siamgas and Sinopharm Group
Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 1.94 times more return on investment than Sinopharm Group. However, Siamgas is 1.94 times more volatile than Sinopharm Group Co. It trades about 0.04 of its potential returns per unit of risk. Sinopharm Group Co is currently generating about 0.06 per unit of risk. If you would invest 10.00 in Siamgas And Petrochemicals on September 5, 2024 and sell it today you would earn a total of 8.00 from holding Siamgas And Petrochemicals or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. Sinopharm Group Co
Performance |
| Timeline |
| Siamgas And Petroche |
| Sinopharm Group |
Siamgas and Sinopharm Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Sinopharm Group
The main advantage of trading using opposite Siamgas and Sinopharm Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Sinopharm 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 Sinopharm Group will offset losses from the drop in Sinopharm Group's long position.The idea behind Siamgas And Petrochemicals and Sinopharm Group Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Sinopharm Group vs. Mitsubishi Gas Chemical | Sinopharm Group vs. Siamgas And Petrochemicals | Sinopharm Group vs. Chesapeake Utilities | Sinopharm Group vs. CHEMICAL INDUSTRIES |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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