Correlation Between Siamgas and Prodigy Public
Can any of the company-specific risk be diversified away by investing in both Siamgas and Prodigy 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 Prodigy 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 Prodigy Public, you can compare the effects of market volatilities on Siamgas and Prodigy 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 Prodigy Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Prodigy Public.
Diversification Opportunities for Siamgas and Prodigy Public
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Siamgas and Prodigy is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas and Petrochemicals and Prodigy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prodigy 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 Prodigy Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prodigy Public has no effect on the direction of Siamgas i.e., Siamgas and Prodigy Public go up and down completely randomly.
Pair Corralation between Siamgas and Prodigy Public
Assuming the 90 days trading horizon Siamgas and Petrochemicals is expected to under-perform the Prodigy Public. But the stock apears to be less risky and, when comparing its historical volatility, Siamgas and Petrochemicals is 1.31 times less risky than Prodigy Public. The stock trades about -0.24 of its potential returns per unit of risk. The Prodigy Public is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 268.00 in Prodigy Public on September 15, 2024 and sell it today you would lose (4.00) from holding Prodigy Public or give up 1.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas and Petrochemicals vs. Prodigy Public
Performance |
| Timeline |
| Siamgas and Petroche |
| Prodigy Public |
Siamgas and Prodigy Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Prodigy Public
The main advantage of trading using opposite Siamgas and Prodigy Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Prodigy 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 Prodigy Public will offset losses from the drop in Prodigy Public's long position.| Siamgas vs. Bangchak Public | Siamgas vs. IRPC Public | Siamgas vs. PTT Exploration and | Siamgas vs. PTG Energy PCL |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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