Correlation Between President Bakery and Siamgas
Can any of the company-specific risk be diversified away by investing in both President Bakery 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 President Bakery and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between President Bakery Public and Siamgas and Petrochemicals, you can compare the effects of market volatilities on President Bakery 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 President Bakery with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of President Bakery and Siamgas.
Diversification Opportunities for President Bakery and Siamgas
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between President and Siamgas is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding President Bakery Public 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 President Bakery 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 President Bakery Public 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 President Bakery i.e., President Bakery and Siamgas go up and down completely randomly.
Pair Corralation between President Bakery and Siamgas
Assuming the 90 days horizon President Bakery Public is expected to under-perform the Siamgas. But the stock apears to be less risky and, when comparing its historical volatility, President Bakery Public is 118.38 times less risky than Siamgas. The stock trades about -0.03 of its potential returns per unit of risk. The Siamgas and Petrochemicals is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Siamgas and Petrochemicals on November 2, 2024 and sell it today you would earn a total of 740.00 from holding Siamgas and Petrochemicals or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.03% |
| Values | Daily Returns |
President Bakery Public vs. Siamgas and Petrochemicals
Performance |
| Timeline |
| President Bakery Public |
| Siamgas and Petroche |
President Bakery and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with President Bakery and Siamgas
The main advantage of trading using opposite President Bakery and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if President Bakery 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.| President Bakery vs. MK Restaurant Group | President Bakery vs. Haad Thip Public | President Bakery vs. Thai President Foods | President Bakery vs. Minor International 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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