Correlation Between Namyong Terminal and Siamgas
Can any of the company-specific risk be diversified away by investing in both Namyong Terminal 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 Namyong Terminal and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Namyong Terminal PCL and Siamgas and Petrochemicals, you can compare the effects of market volatilities on Namyong Terminal 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 Namyong Terminal with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Namyong Terminal and Siamgas.
Diversification Opportunities for Namyong Terminal and Siamgas
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Namyong and Siamgas is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Namyong Terminal PCL 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 Namyong Terminal 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 Namyong Terminal PCL 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 Namyong Terminal i.e., Namyong Terminal and Siamgas go up and down completely randomly.
Pair Corralation between Namyong Terminal and Siamgas
Assuming the 90 days trading horizon Namyong Terminal PCL is expected to generate 1.79 times more return on investment than Siamgas. However, Namyong Terminal is 1.79 times more volatile than Siamgas and Petrochemicals. It trades about 0.26 of its potential returns per unit of risk. Siamgas and Petrochemicals is currently generating about 0.0 per unit of risk. If you would invest 292.00 in Namyong Terminal PCL on October 20, 2024 and sell it today you would earn a total of 24.00 from holding Namyong Terminal PCL or generate 8.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Namyong Terminal PCL vs. Siamgas and Petrochemicals
Performance |
| Timeline |
| Namyong Terminal PCL |
| Siamgas and Petroche |
Namyong Terminal and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Namyong Terminal and Siamgas
The main advantage of trading using opposite Namyong Terminal and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Namyong Terminal 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.| Namyong Terminal vs. Super Energy | Namyong Terminal vs. RPCG Public | Namyong Terminal vs. Thoresen Thai Agencies | Namyong Terminal vs. Precious Shipping Public |
| Siamgas vs. Bangchak Public | Siamgas vs. IRPC Public | Siamgas vs. PTT Exploration and | Siamgas vs. Star Petroleum Refining |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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