Correlation Between SBM OFFSHORE and Siamgas
Can any of the company-specific risk be diversified away by investing in both SBM OFFSHORE 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 SBM OFFSHORE and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SBM OFFSHORE and Siamgas And Petrochemicals, you can compare the effects of market volatilities on SBM OFFSHORE 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 SBM OFFSHORE with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBM OFFSHORE and Siamgas.
Diversification Opportunities for SBM OFFSHORE and Siamgas
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between SBM and Siamgas is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding SBM OFFSHORE 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 SBM OFFSHORE 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 SBM OFFSHORE 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 SBM OFFSHORE i.e., SBM OFFSHORE and Siamgas go up and down completely randomly.
Pair Corralation between SBM OFFSHORE and Siamgas
If you would invest 1,645 in SBM OFFSHORE on October 20, 2024 and sell it today you would earn a total of 160.00 from holding SBM OFFSHORE or generate 9.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBM OFFSHORE vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| SBM OFFSHORE |
| Siamgas And Petroche |
SBM OFFSHORE and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBM OFFSHORE and Siamgas
The main advantage of trading using opposite SBM OFFSHORE and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBM OFFSHORE 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.| SBM OFFSHORE vs. BORR DRILLING NEW | SBM OFFSHORE vs. GLG LIFE TECH | SBM OFFSHORE vs. Bio Techne Corp | SBM OFFSHORE vs. Addtech AB |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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