Correlation Between Siamgas and MCOT Public
Can any of the company-specific risk be diversified away by investing in both Siamgas and MCOT 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 MCOT 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 MCOT Public, you can compare the effects of market volatilities on Siamgas and MCOT 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 MCOT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and MCOT Public.
Diversification Opportunities for Siamgas and MCOT Public
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Siamgas and MCOT is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas and Petrochemicals and MCOT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MCOT 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 MCOT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MCOT Public has no effect on the direction of Siamgas i.e., Siamgas and MCOT Public go up and down completely randomly.
Pair Corralation between Siamgas and MCOT Public
Assuming the 90 days trading horizon Siamgas and Petrochemicals is expected to generate 0.17 times more return on investment than MCOT Public. However, Siamgas and Petrochemicals is 6.0 times less risky than MCOT Public. It trades about 0.0 of its potential returns per unit of risk. MCOT Public is currently generating about -0.25 per unit of risk. If you would invest 705.00 in Siamgas and Petrochemicals on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Siamgas and Petrochemicals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas and Petrochemicals vs. MCOT Public
Performance |
| Timeline |
| Siamgas and Petroche |
| MCOT Public |
Siamgas and MCOT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and MCOT Public
The main advantage of trading using opposite Siamgas and MCOT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, MCOT 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 MCOT Public will offset losses from the drop in MCOT Public's long position.| Siamgas vs. Bangchak Public | Siamgas vs. IRPC Public | Siamgas vs. PTT Exploration and | Siamgas vs. Star Petroleum Refining |
| MCOT Public vs. Siamgas and Petrochemicals | MCOT Public vs. Namyong Terminal PCL | MCOT Public vs. The Erawan Group | MCOT Public vs. Autocorp Holding 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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