Correlation Between BII Railway and Siamgas
Can any of the company-specific risk be diversified away by investing in both BII Railway 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 BII Railway and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BII Railway Transportation and Siamgas And Petrochemicals, you can compare the effects of market volatilities on BII Railway 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 BII Railway with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of BII Railway and Siamgas.
Diversification Opportunities for BII Railway and Siamgas
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BII and Siamgas is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding BII Railway Transportation 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 BII Railway 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 BII Railway Transportation 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 BII Railway i.e., BII Railway and Siamgas go up and down completely randomly.
Pair Corralation between BII Railway and Siamgas
Assuming the 90 days horizon BII Railway Transportation is expected to under-perform the Siamgas. In addition to that, BII Railway is 1.26 times more volatile than Siamgas And Petrochemicals. It trades about -0.05 of its total potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.22 per unit of volatility. If you would invest 18.00 in Siamgas And Petrochemicals on November 4, 2024 and sell it today you would earn a total of 1.00 from holding Siamgas And Petrochemicals or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
BII Railway Transportation vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| BII Railway Transpor |
| Siamgas And Petroche |
BII Railway and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BII Railway and Siamgas
The main advantage of trading using opposite BII Railway and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BII Railway 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.| BII Railway vs. UNIVERSAL DISPLAY | BII Railway vs. Suntory Beverage Food | BII Railway vs. UNITED UTILITIES GR | BII Railway vs. PLAYTIKA HOLDING DL 01 |
| Siamgas vs. VIRGIN WINES UK | Siamgas vs. Grand Canyon Education | Siamgas vs. CHINA TONTINE WINES | Siamgas vs. betterU Education Corp |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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