Correlation Between AIR PRODCHEMICALS and Siamgas
Can any of the company-specific risk be diversified away by investing in both AIR PRODCHEMICALS 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 AIR PRODCHEMICALS and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIR PRODCHEMICALS and Siamgas And Petrochemicals, you can compare the effects of market volatilities on AIR PRODCHEMICALS 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 AIR PRODCHEMICALS with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIR PRODCHEMICALS and Siamgas.
Diversification Opportunities for AIR PRODCHEMICALS and Siamgas
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AIR and Siamgas is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding AIR PRODCHEMICALS 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 AIR PRODCHEMICALS 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 AIR PRODCHEMICALS 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 AIR PRODCHEMICALS i.e., AIR PRODCHEMICALS and Siamgas go up and down completely randomly.
Pair Corralation between AIR PRODCHEMICALS and Siamgas
Assuming the 90 days trading horizon AIR PRODCHEMICALS is expected to generate 0.36 times more return on investment than Siamgas. However, AIR PRODCHEMICALS is 2.77 times less risky than Siamgas. It trades about 0.06 of its potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.02 per unit of risk. If you would invest 30,550 in AIR PRODCHEMICALS on August 24, 2024 and sell it today you would earn a total of 480.00 from holding AIR PRODCHEMICALS or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIR PRODCHEMICALS vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| AIR PRODCHEMICALS |
| Siamgas And Petroche |
AIR PRODCHEMICALS and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIR PRODCHEMICALS and Siamgas
The main advantage of trading using opposite AIR PRODCHEMICALS and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIR PRODCHEMICALS 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.| AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc | AIR PRODCHEMICALS vs. Apple Inc |
| Siamgas vs. Cogent Communications Holdings | Siamgas vs. NH HOTEL GROUP | Siamgas vs. Playa Hotels Resorts | Siamgas vs. Taiwan Semiconductor Manufacturing |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |