Correlation Between Sea Oil and SiamEast Solutions
Can any of the company-specific risk be diversified away by investing in both Sea Oil and SiamEast Solutions 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 Sea Oil and SiamEast Solutions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sea Oil Public and SiamEast Solutions Public, you can compare the effects of market volatilities on Sea Oil and SiamEast Solutions 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 Sea Oil with a short position of SiamEast Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sea Oil and SiamEast Solutions.
Diversification Opportunities for Sea Oil and SiamEast Solutions
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sea and SiamEast is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Sea Oil Public and SiamEast Solutions Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SiamEast Solutions Public and Sea Oil 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 Sea Oil Public are associated (or correlated) with SiamEast Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SiamEast Solutions Public has no effect on the direction of Sea Oil i.e., Sea Oil and SiamEast Solutions go up and down completely randomly.
Pair Corralation between Sea Oil and SiamEast Solutions
Assuming the 90 days trading horizon Sea Oil Public is expected to under-perform the SiamEast Solutions. But the stock apears to be less risky and, when comparing its historical volatility, Sea Oil Public is 34.5 times less risky than SiamEast Solutions. The stock trades about -0.01 of its potential returns per unit of risk. The SiamEast Solutions Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 91.00 in SiamEast Solutions Public on September 12, 2024 and sell it today you would lose (33.00) from holding SiamEast Solutions Public or give up 36.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sea Oil Public vs. SiamEast Solutions Public
Performance |
| Timeline |
| Sea Oil Public |
| SiamEast Solutions Public |
Sea Oil and SiamEast Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sea Oil and SiamEast Solutions
The main advantage of trading using opposite Sea Oil and SiamEast Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sea Oil position performs unexpectedly, SiamEast Solutions 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 SiamEast Solutions will offset losses from the drop in SiamEast Solutions' long position.| Sea Oil vs. PTT Oil and | Sea Oil vs. Thai Oil Public | Sea Oil vs. IRPC Public | Sea Oil vs. Star Petroleum Refining |
| SiamEast Solutions vs. Sea Oil Public | SiamEast Solutions vs. SGF Capital Public | SiamEast Solutions vs. Project Planning Service | SiamEast Solutions vs. Panjawattana Plastic Public |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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