Correlation Between Apple and Siamgas
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Siamgas And Petrochemicals, you can compare the effects of market volatilities on Apple 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 Apple with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Siamgas.
Diversification Opportunities for Apple and Siamgas
Weak diversification
The 3 months correlation between Apple and Siamgas is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc 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 Apple 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 Apple Inc 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 Apple i.e., Apple and Siamgas go up and down completely randomly.
Pair Corralation between Apple and Siamgas
Assuming the 90 days trading horizon Apple is expected to generate 2.77 times less return on investment than Siamgas. But when comparing it to its historical volatility, Apple Inc is 4.83 times less risky than Siamgas. It trades about 0.07 of its potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 11.00 in Siamgas And Petrochemicals on August 26, 2024 and sell it today you would earn a total of 7.00 from holding Siamgas And Petrochemicals or generate 63.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| Apple Inc |
| Siamgas And Petroche |
Apple and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Siamgas
The main advantage of trading using opposite Apple and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.| Apple vs. Perdoceo Education | Apple vs. UNITED UTILITIES GR | Apple vs. Federal Agricultural Mortgage | Apple vs. North American Construction |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |