Correlation Between BP Plc and Siamgas
Can any of the company-specific risk be diversified away by investing in both BP Plc 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 BP Plc and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BP plc and Siamgas And Petrochemicals, you can compare the effects of market volatilities on BP Plc 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 BP Plc with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of BP Plc and Siamgas.
Diversification Opportunities for BP Plc and Siamgas
Very good diversification
The 3 months correlation between BSU and Siamgas is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding BP plc 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 BP Plc 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 BP plc 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 BP Plc i.e., BP Plc and Siamgas go up and down completely randomly.
Pair Corralation between BP Plc and Siamgas
Assuming the 90 days horizon BP Plc is expected to generate 92.78 times less return on investment than Siamgas. But when comparing it to its historical volatility, BP plc is 4.5 times less risky than Siamgas. It trades about 0.0 of its potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Siamgas And Petrochemicals on November 30, 2024 and sell it today you would earn a total of 11.00 from holding Siamgas And Petrochemicals or generate 110.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BP plc vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| BP plc |
| Siamgas And Petroche |
BP Plc and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BP Plc and Siamgas
The main advantage of trading using opposite BP Plc and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BP Plc 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.| BP Plc vs. Cairo Communication SpA | BP Plc vs. ANTA Sports Products | BP Plc vs. Fukuyama Transporting Co | BP Plc vs. Entravision Communications |
| Siamgas vs. UNIQA INSURANCE GR | Siamgas vs. UMC Electronics Co | Siamgas vs. REVO INSURANCE SPA | Siamgas vs. Sabre Insurance Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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