Correlation Between Charoen Pokphand and Siamgas
Can any of the company-specific risk be diversified away by investing in both Charoen Pokphand 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 Charoen Pokphand and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charoen Pokphand Foods and Siamgas And Petrochemicals, you can compare the effects of market volatilities on Charoen Pokphand 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 Charoen Pokphand with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charoen Pokphand and Siamgas.
Diversification Opportunities for Charoen Pokphand and Siamgas
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Charoen and Siamgas is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Charoen Pokphand Foods 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 Charoen Pokphand 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 Charoen Pokphand Foods 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 Charoen Pokphand i.e., Charoen Pokphand and Siamgas go up and down completely randomly.
Pair Corralation between Charoen Pokphand and Siamgas
Assuming the 90 days trading horizon Charoen Pokphand is expected to generate 15.15 times less return on investment than Siamgas. But when comparing it to its historical volatility, Charoen Pokphand Foods is 1.53 times less risky than Siamgas. It trades about 0.02 of its potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Siamgas And Petrochemicals on November 29, 2024 and sell it today you would earn a total of 3.00 from holding Siamgas And Petrochemicals or generate 15.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Charoen Pokphand Foods vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| Charoen Pokphand Foods |
| Siamgas And Petroche |
Charoen Pokphand and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charoen Pokphand and Siamgas
The main advantage of trading using opposite Charoen Pokphand and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charoen Pokphand 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.| Charoen Pokphand vs. Singapore Telecommunications Limited | Charoen Pokphand vs. SmarTone Telecommunications Holdings | Charoen Pokphand vs. Cairo Communication SpA | Charoen Pokphand vs. COLUMBIA SPORTSWEAR |
| Siamgas vs. Norwegian Air Shuttle | Siamgas vs. Corsair Gaming | Siamgas vs. BE Semiconductor Industries | Siamgas vs. Enter Air SA |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |