Correlation Between Compagnie Plastic and Siamgas
Can any of the company-specific risk be diversified away by investing in both Compagnie Plastic 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 Compagnie Plastic and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compagnie Plastic Omnium and Siamgas And Petrochemicals, you can compare the effects of market volatilities on Compagnie Plastic 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 Compagnie Plastic with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compagnie Plastic and Siamgas.
Diversification Opportunities for Compagnie Plastic and Siamgas
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Compagnie and Siamgas is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Compagnie Plastic Omnium 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 Compagnie Plastic 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 Compagnie Plastic Omnium 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 Compagnie Plastic i.e., Compagnie Plastic and Siamgas go up and down completely randomly.
Pair Corralation between Compagnie Plastic and Siamgas
Assuming the 90 days horizon Compagnie Plastic is expected to generate 12.55 times less return on investment than Siamgas. But when comparing it to its historical volatility, Compagnie Plastic Omnium is 2.65 times less risky than Siamgas. It trades about 0.01 of its potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 18.00 in Siamgas And Petrochemicals on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Siamgas And Petrochemicals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compagnie Plastic Omnium vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| Compagnie Plastic Omnium |
| Siamgas And Petroche |
Compagnie Plastic and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compagnie Plastic and Siamgas
The main advantage of trading using opposite Compagnie Plastic and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compagnie Plastic 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.| Compagnie Plastic vs. SAN MIGUEL BREWERY | Compagnie Plastic vs. SALESFORCE INC CDR | Compagnie Plastic vs. BOSTON BEER A | Compagnie Plastic vs. FLOW TRADERS LTD |
| Siamgas vs. Global Ship Lease | Siamgas vs. Perseus Mining Limited | Siamgas vs. United Utilities Group | Siamgas vs. United Rentals |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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