Correlation Between Siamgas and Ratch Group
Can any of the company-specific risk be diversified away by investing in both Siamgas and Ratch Group 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 Ratch Group 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 Ratch Group Public, you can compare the effects of market volatilities on Siamgas and Ratch Group 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 Ratch Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Ratch Group.
Diversification Opportunities for Siamgas and Ratch Group
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Siamgas and Ratch is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas and Petrochemicals and Ratch Group Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ratch Group 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 Ratch Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ratch Group Public has no effect on the direction of Siamgas i.e., Siamgas and Ratch Group go up and down completely randomly.
Pair Corralation between Siamgas and Ratch Group
Assuming the 90 days trading horizon Siamgas and Petrochemicals is expected to under-perform the Ratch Group. But the stock apears to be less risky and, when comparing its historical volatility, Siamgas and Petrochemicals is 2.05 times less risky than Ratch Group. The stock trades about -0.03 of its potential returns per unit of risk. The Ratch Group Public is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 3,200 in Ratch Group Public on September 4, 2024 and sell it today you would lose (25.00) from holding Ratch Group Public or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas and Petrochemicals vs. Ratch Group Public
Performance |
| Timeline |
| Siamgas and Petroche |
| Ratch Group Public |
Siamgas and Ratch Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Ratch Group
The main advantage of trading using opposite Siamgas and Ratch Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Ratch Group 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 Ratch Group will offset losses from the drop in Ratch Group's long position.| Siamgas vs. PTT Public | Siamgas vs. SCB X Public | Siamgas vs. The Siam Commercial | Siamgas vs. The Siam Cement |
| Ratch Group vs. Electricity Generating Public | Ratch Group vs. PTT Public | Ratch Group vs. Advanced Info Service | Ratch Group vs. The Siam Cement |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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