Correlation Between Siamgas and Bangchak Public
Can any of the company-specific risk be diversified away by investing in both Siamgas and Bangchak Public 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 Siamgas and Bangchak Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siamgas and Petrochemicals and Bangchak Public, you can compare the effects of market volatilities on Siamgas and Bangchak Public 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 Siamgas with a short position of Bangchak Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Bangchak Public.
Diversification Opportunities for Siamgas and Bangchak Public
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Siamgas and Bangchak is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas and Petrochemicals and Bangchak Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangchak Public and Siamgas 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 Siamgas and Petrochemicals are associated (or correlated) with Bangchak Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangchak Public has no effect on the direction of Siamgas i.e., Siamgas and Bangchak Public go up and down completely randomly.
Pair Corralation between Siamgas and Bangchak Public
Assuming the 90 days trading horizon Siamgas and Petrochemicals is expected to generate 26.94 times more return on investment than Bangchak Public. However, Siamgas is 26.94 times more volatile than Bangchak Public. It trades about 0.05 of its potential returns per unit of risk. Bangchak Public is currently generating about -0.01 per unit of risk. If you would invest 787.00 in Siamgas and Petrochemicals on September 12, 2024 and sell it today you would lose (87.00) from holding Siamgas and Petrochemicals or give up 11.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas and Petrochemicals vs. Bangchak Public
Performance |
| Timeline |
| Siamgas and Petroche |
| Bangchak Public |
Siamgas and Bangchak Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Bangchak Public
The main advantage of trading using opposite Siamgas and Bangchak Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Bangchak Public 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 Bangchak Public will offset losses from the drop in Bangchak Public's long position.| Siamgas vs. Bangchak Public | Siamgas vs. IRPC Public | Siamgas vs. PTT Exploration and | Siamgas vs. Star Petroleum Refining |
| Bangchak Public vs. IRPC Public | Bangchak Public vs. PTT Exploration and | Bangchak Public vs. Star Petroleum Refining | Bangchak Public vs. PTG Energy PCL |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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