Correlation Between Digilife Technologies and Siamgas
Can any of the company-specific risk be diversified away by investing in both Digilife Technologies 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 Digilife Technologies and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digilife Technologies Limited and Siamgas And Petrochemicals, you can compare the effects of market volatilities on Digilife Technologies 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 Digilife Technologies with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digilife Technologies and Siamgas.
Diversification Opportunities for Digilife Technologies and Siamgas
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Digilife and Siamgas is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Digilife Technologies Limited 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 Digilife Technologies 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 Digilife Technologies Limited 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 Digilife Technologies i.e., Digilife Technologies and Siamgas go up and down completely randomly.
Pair Corralation between Digilife Technologies and Siamgas
Assuming the 90 days trading horizon Digilife Technologies Limited is expected to under-perform the Siamgas. In addition to that, Digilife Technologies is 3.58 times more volatile than Siamgas And Petrochemicals. It trades about -0.09 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 October 28, 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 Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digilife Technologies Limited vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| Digilife Technologies |
| Siamgas And Petroche |
Digilife Technologies and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digilife Technologies and Siamgas
The main advantage of trading using opposite Digilife Technologies and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digilife Technologies 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.| Digilife Technologies vs. Globex Mining Enterprises | Digilife Technologies vs. Endeavour Mining PLC | Digilife Technologies vs. PPHE HOTEL GROUP | Digilife Technologies vs. Pebblebrook Hotel Trust |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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