Correlation Between PROSIEBENSAT1 MEDIADR4/ and Siamgas
Can any of the company-specific risk be diversified away by investing in both PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4/ and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PROSIEBENSAT1 MEDIADR4 and Siamgas And Petrochemicals, you can compare the effects of market volatilities on PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4/ with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of PROSIEBENSAT1 MEDIADR4/ and Siamgas.
Diversification Opportunities for PROSIEBENSAT1 MEDIADR4/ and Siamgas
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between PROSIEBENSAT1 and Siamgas is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding PROSIEBENSAT1 MEDIADR4 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 PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4 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 PROSIEBENSAT1 MEDIADR4/ i.e., PROSIEBENSAT1 MEDIADR4/ and Siamgas go up and down completely randomly.
Pair Corralation between PROSIEBENSAT1 MEDIADR4/ and Siamgas
Assuming the 90 days trading horizon PROSIEBENSAT1 MEDIADR4 is expected to under-perform the Siamgas. But the stock apears to be less risky and, when comparing its historical volatility, PROSIEBENSAT1 MEDIADR4 is 1.01 times less risky than Siamgas. The stock trades about -0.07 of its potential returns per unit of risk. The Siamgas And Petrochemicals is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 19.00 in Siamgas And Petrochemicals on September 13, 2024 and sell it today you would lose (1.00) from holding Siamgas And Petrochemicals or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PROSIEBENSAT1 MEDIADR4 vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| PROSIEBENSAT1 MEDIADR4/ |
| Siamgas And Petroche |
PROSIEBENSAT1 MEDIADR4/ and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PROSIEBENSAT1 MEDIADR4/ and Siamgas
The main advantage of trading using opposite PROSIEBENSAT1 MEDIADR4/ and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PROSIEBENSAT1 MEDIADR4/ 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.| PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc | PROSIEBENSAT1 MEDIADR4/ vs. Apple Inc |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |