Correlation Between CHINA EDUCATION and Siamgas
Can any of the company-specific risk be diversified away by investing in both CHINA EDUCATION 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 CHINA EDUCATION and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA EDUCATION GROUP and Siamgas And Petrochemicals, you can compare the effects of market volatilities on CHINA EDUCATION 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 CHINA EDUCATION with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA EDUCATION and Siamgas.
Diversification Opportunities for CHINA EDUCATION and Siamgas
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between CHINA and Siamgas is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding CHINA EDUCATION GROUP 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 CHINA EDUCATION 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 CHINA EDUCATION GROUP 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 CHINA EDUCATION i.e., CHINA EDUCATION and Siamgas go up and down completely randomly.
Pair Corralation between CHINA EDUCATION and Siamgas
Assuming the 90 days horizon CHINA EDUCATION is expected to generate 2.79 times less return on investment than Siamgas. But when comparing it to its historical volatility, CHINA EDUCATION GROUP is 1.56 times less risky than Siamgas. It trades about 0.02 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 October 11, 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 | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
CHINA EDUCATION GROUP vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| CHINA EDUCATION GROUP |
| Siamgas And Petroche |
CHINA EDUCATION and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA EDUCATION and Siamgas
The main advantage of trading using opposite CHINA EDUCATION and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA EDUCATION 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.| CHINA EDUCATION vs. Taiwan Semiconductor Manufacturing | CHINA EDUCATION vs. ELMOS SEMICONDUCTOR | CHINA EDUCATION vs. RCS MediaGroup SpA | CHINA EDUCATION vs. Nexstar Media Group |
| Siamgas vs. DIVERSIFIED ROYALTY | Siamgas vs. Guangdong Investment Limited | Siamgas vs. Eidesvik Offshore ASA | Siamgas vs. Information Services International Dentsu |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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