Correlation Between STMICROELECTRONICS and Siamgas
Can any of the company-specific risk be diversified away by investing in both STMICROELECTRONICS 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 STMICROELECTRONICS and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STMICROELECTRONICS and Siamgas And Petrochemicals, you can compare the effects of market volatilities on STMICROELECTRONICS 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 STMICROELECTRONICS with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of STMICROELECTRONICS and Siamgas.
Diversification Opportunities for STMICROELECTRONICS and Siamgas
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between STMICROELECTRONICS and Siamgas is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding STMICROELECTRONICS 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 STMICROELECTRONICS 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 STMICROELECTRONICS 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 STMICROELECTRONICS i.e., STMICROELECTRONICS and Siamgas go up and down completely randomly.
Pair Corralation between STMICROELECTRONICS and Siamgas
If you would invest 2,363 in STMICROELECTRONICS on October 24, 2024 and sell it today you would earn a total of 90.00 from holding STMICROELECTRONICS or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
STMICROELECTRONICS vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| STMICROELECTRONICS |
| Siamgas And Petroche |
STMICROELECTRONICS and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STMICROELECTRONICS and Siamgas
The main advantage of trading using opposite STMICROELECTRONICS and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STMICROELECTRONICS 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.| STMICROELECTRONICS vs. Apple Inc | STMICROELECTRONICS vs. Apple Inc | STMICROELECTRONICS vs. Apple Inc | STMICROELECTRONICS vs. Apple Inc |
| Siamgas vs. DELTA AIR LINES | Siamgas vs. AUTOHOME INC A | Siamgas vs. The Home Depot | Siamgas vs. Hisense Home Appliances |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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