Correlation Between TAL Education and Siamgas
Can any of the company-specific risk be diversified away by investing in both TAL 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 TAL Education and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TAL Education Group and Siamgas And Petrochemicals, you can compare the effects of market volatilities on TAL 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 TAL Education with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAL Education and Siamgas.
Diversification Opportunities for TAL Education and Siamgas
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TAL and Siamgas is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding TAL 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 TAL 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 TAL 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 TAL Education i.e., TAL Education and Siamgas go up and down completely randomly.
Pair Corralation between TAL Education and Siamgas
Assuming the 90 days trading horizon TAL Education is expected to generate 2.25 times less return on investment than Siamgas. But when comparing it to its historical volatility, TAL Education Group is 1.66 times less risky than Siamgas. It trades about 0.03 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TAL Education Group vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| TAL Education Group |
| Siamgas And Petroche |
TAL Education and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAL Education and Siamgas
The main advantage of trading using opposite TAL Education and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAL 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.| TAL Education vs. Martin Marietta Materials | TAL Education vs. Rayonier Advanced Materials | TAL Education vs. RELIANCE STEEL AL | TAL Education vs. ALGOMA STEEL 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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