Correlation Between VARIOUS EATERIES and Siamgas
Can any of the company-specific risk be diversified away by investing in both VARIOUS EATERIES and Siamgas 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 VARIOUS EATERIES and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VARIOUS EATERIES LS and Siamgas And Petrochemicals, you can compare the effects of market volatilities on VARIOUS EATERIES and Siamgas 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 VARIOUS EATERIES with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of VARIOUS EATERIES and Siamgas.
Diversification Opportunities for VARIOUS EATERIES and Siamgas
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VARIOUS and Siamgas is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding VARIOUS EATERIES LS and Siamgas And Petrochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siamgas And Petroche and VARIOUS EATERIES 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 VARIOUS EATERIES LS are associated (or correlated) with Siamgas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siamgas And Petroche has no effect on the direction of VARIOUS EATERIES i.e., VARIOUS EATERIES and Siamgas go up and down completely randomly.
Pair Corralation between VARIOUS EATERIES and Siamgas
Assuming the 90 days horizon VARIOUS EATERIES LS is expected to under-perform the Siamgas. But the stock apears to be less risky and, when comparing its historical volatility, VARIOUS EATERIES LS is 1.06 times less risky than Siamgas. The stock trades about -0.22 of its potential returns per unit of risk. The Siamgas And Petrochemicals is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Siamgas And Petrochemicals on November 4, 2024 and sell it today you would earn a total of 1.00 from holding Siamgas And Petrochemicals or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VARIOUS EATERIES LS vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| VARIOUS EATERIES |
| Siamgas And Petroche |
VARIOUS EATERIES and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VARIOUS EATERIES and Siamgas
The main advantage of trading using opposite VARIOUS EATERIES and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VARIOUS EATERIES position performs unexpectedly, Siamgas 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 Siamgas will offset losses from the drop in Siamgas' long position.| VARIOUS EATERIES vs. GRUPO CARSO A1 | VARIOUS EATERIES vs. Transport International Holdings | VARIOUS EATERIES vs. GigaMedia | VARIOUS EATERIES vs. GEELY AUTOMOBILE |
| Siamgas vs. VIRGIN WINES UK | Siamgas vs. Grand Canyon Education | Siamgas vs. CHINA TONTINE WINES | Siamgas vs. betterU Education Corp |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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