Correlation Between Hisense Home and Siamgas
Can any of the company-specific risk be diversified away by investing in both Hisense Home 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 Hisense Home and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hisense Home Appliances and Siamgas And Petrochemicals, you can compare the effects of market volatilities on Hisense Home 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 Hisense Home with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hisense Home and Siamgas.
Diversification Opportunities for Hisense Home and Siamgas
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hisense and Siamgas is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Hisense Home Appliances 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 Hisense Home 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 Hisense Home Appliances 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 Hisense Home i.e., Hisense Home and Siamgas go up and down completely randomly.
Pair Corralation between Hisense Home and Siamgas
Assuming the 90 days horizon Hisense Home Appliances is expected to generate 1.56 times more return on investment than Siamgas. However, Hisense Home is 1.56 times more volatile than Siamgas And Petrochemicals. It trades about 0.07 of its potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.01 per unit of risk. If you would invest 278.00 in Hisense Home Appliances on October 24, 2024 and sell it today you would earn a total of 55.00 from holding Hisense Home Appliances or generate 19.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hisense Home Appliances vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| Hisense Home Appliances |
| Siamgas And Petroche |
Hisense Home and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hisense Home and Siamgas
The main advantage of trading using opposite Hisense Home and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hisense Home 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.| Hisense Home vs. China Communications Services | Hisense Home vs. Clean Energy Fuels | Hisense Home vs. Burlington Stores | Hisense Home vs. AEON STORES |
| Siamgas vs. DELTA AIR LINES | Siamgas vs. AUTOHOME INC A | Siamgas vs. The Home Depot | Siamgas vs. Hisense Home Appliances |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |