Correlation Between Siamgas and Ditto Public
Can any of the company-specific risk be diversified away by investing in both Siamgas and Ditto 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 Ditto 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 Ditto Public, you can compare the effects of market volatilities on Siamgas and Ditto 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 Ditto Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Ditto Public.
Diversification Opportunities for Siamgas and Ditto Public
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siamgas and Ditto is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas and Petrochemicals and Ditto Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ditto 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 Ditto Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ditto Public has no effect on the direction of Siamgas i.e., Siamgas and Ditto Public go up and down completely randomly.
Pair Corralation between Siamgas and Ditto Public
Assuming the 90 days trading horizon Siamgas and Petrochemicals is expected to generate 29.74 times more return on investment than Ditto Public. However, Siamgas is 29.74 times more volatile than Ditto Public. It trades about 0.1 of its potential returns per unit of risk. Ditto Public is currently generating about -0.08 per unit of risk. 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 Together |
| Strength | Insignificant |
| Accuracy | 99.03% |
| Values | Daily Returns |
Siamgas and Petrochemicals vs. Ditto Public
Performance |
| Timeline |
| Siamgas and Petroche |
| Ditto Public |
Siamgas and Ditto Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Ditto Public
The main advantage of trading using opposite Siamgas and Ditto Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Ditto 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 Ditto Public will offset losses from the drop in Ditto Public's long position.| Siamgas vs. Bangchak Public | Siamgas vs. IRPC Public | Siamgas vs. PTT Exploration and | Siamgas vs. Star Petroleum Refining |
| Ditto Public vs. Dohome Public | Ditto Public vs. Beryl 8 Plus | Ditto Public vs. Forth Public | Ditto Public vs. Delta Electronics 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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