Correlation Between Siamgas and X FAB
Can any of the company-specific risk be diversified away by investing in both Siamgas and X FAB 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 X FAB 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 X FAB Silicon Foundries, you can compare the effects of market volatilities on Siamgas and X FAB 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 X FAB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and X FAB.
Diversification Opportunities for Siamgas and X FAB
Weak diversification
The 3 months correlation between Siamgas and XFB is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and X FAB Silicon Foundries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X FAB Silicon 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 X FAB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X FAB Silicon has no effect on the direction of Siamgas i.e., Siamgas and X FAB go up and down completely randomly.
Pair Corralation between Siamgas and X FAB
Assuming the 90 days trading horizon Siamgas is expected to generate 1.01 times less return on investment than X FAB. But when comparing it to its historical volatility, Siamgas And Petrochemicals is 1.21 times less risky than X FAB. It trades about 0.09 of its potential returns per unit of risk. X FAB Silicon Foundries is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 433.00 in X FAB Silicon Foundries on November 1, 2024 and sell it today you would earn a total of 47.00 from holding X FAB Silicon Foundries or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.33% |
| Values | Daily Returns |
Siamgas And Petrochemicals vs. X FAB Silicon Foundries
Performance |
| Timeline |
| Siamgas And Petroche |
| X FAB Silicon |
Siamgas and X FAB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and X FAB
The main advantage of trading using opposite Siamgas and X FAB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, X FAB 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 X FAB will offset losses from the drop in X FAB's long position.| Siamgas vs. SIDETRADE EO 1 | Siamgas vs. CARSALESCOM | Siamgas vs. MARKET VECTR RETAIL | Siamgas vs. TRADELINK ELECTRON |
| X FAB vs. Carsales | X FAB vs. The Hanover Insurance | X FAB vs. Safety Insurance Group | X FAB vs. PACIFIC ONLINE |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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