Correlation Between Automatic Data and Siamgas
Can any of the company-specific risk be diversified away by investing in both Automatic Data 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 Automatic Data and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Automatic Data Processing and Siamgas And Petrochemicals, you can compare the effects of market volatilities on Automatic Data 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 Automatic Data with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Automatic Data and Siamgas.
Diversification Opportunities for Automatic Data and Siamgas
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Automatic and Siamgas is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Automatic Data Processing 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 Automatic Data 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 Automatic Data Processing 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 Automatic Data i.e., Automatic Data and Siamgas go up and down completely randomly.
Pair Corralation between Automatic Data and Siamgas
Assuming the 90 days horizon Automatic Data Processing is expected to generate 0.38 times more return on investment than Siamgas. However, Automatic Data Processing is 2.64 times less risky than Siamgas. It trades about 0.39 of its potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.01 per unit of risk. If you would invest 26,575 in Automatic Data Processing on August 31, 2024 and sell it today you would earn a total of 2,700 from holding Automatic Data Processing or generate 10.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Automatic Data Processing vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| Automatic Data Processing |
| Siamgas And Petroche |
Automatic Data and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Automatic Data and Siamgas
The main advantage of trading using opposite Automatic Data and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automatic Data 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.| Automatic Data vs. Clean Energy Fuels | Automatic Data vs. Federal Agricultural Mortgage | Automatic Data vs. Ultra Clean Holdings | Automatic Data vs. LION ONE METALS |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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