Correlation Between Clearway Energy and Siamgas
Can any of the company-specific risk be diversified away by investing in both Clearway Energy 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 Clearway Energy and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearway Energy and Siamgas And Petrochemicals, you can compare the effects of market volatilities on Clearway Energy 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 Clearway Energy with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearway Energy and Siamgas.
Diversification Opportunities for Clearway Energy and Siamgas
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Clearway and Siamgas is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Clearway Energy 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 Clearway Energy 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 Clearway Energy 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 Clearway Energy i.e., Clearway Energy and Siamgas go up and down completely randomly.
Pair Corralation between Clearway Energy and Siamgas
Assuming the 90 days trading horizon Clearway Energy is expected to generate 11.25 times less return on investment than Siamgas. But when comparing it to its historical volatility, Clearway Energy is 3.84 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 0.05 of returns per unit of risk over similar time horizon. If you would invest 8.97 in Siamgas And Petrochemicals on September 19, 2024 and sell it today you would earn a total of 8.03 from holding Siamgas And Petrochemicals or generate 89.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearway Energy vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| Clearway Energy |
| Siamgas And Petroche |
Clearway Energy and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearway Energy and Siamgas
The main advantage of trading using opposite Clearway Energy and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearway Energy 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.| Clearway Energy vs. TIANDE CHEMICAL | Clearway Energy vs. YATRA ONLINE DL 0001 | Clearway Energy vs. X FAB Silicon Foundries | Clearway Energy vs. China BlueChemical |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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