Correlation Between RS Public and Siamgas
Can any of the company-specific risk be diversified away by investing in both RS Public 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 RS Public and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between RS Public and Siamgas and Petrochemicals, you can compare the effects of market volatilities on RS Public 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 RS Public with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of RS Public and Siamgas.
Diversification Opportunities for RS Public and Siamgas
Very good diversification
The 3 months correlation between RS Public and Siamgas is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding RS 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 RS Public 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 RS 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 RS Public i.e., RS Public and Siamgas go up and down completely randomly.
Pair Corralation between RS Public and Siamgas
Assuming the 90 days horizon RS Public is expected to under-perform the Siamgas. But the stock apears to be less risky and, when comparing its historical volatility, RS Public is 16.77 times less risky than Siamgas. The stock trades about -0.23 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 |
RS Public vs. Siamgas and Petrochemicals
Performance |
| Timeline |
| RS Public |
| Siamgas and Petroche |
RS Public and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with RS Public and Siamgas
The main advantage of trading using opposite RS Public and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if RS Public 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.| RS Public vs. Bangkok Chain Hospital | RS Public vs. Jay Mart Public | RS Public vs. Energy Absolute Public | RS Public vs. Delta Electronics 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 CEOs Directory module to screen CEOs from public companies around the world.
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