Correlation Between Siamgas and Star Petroleum
Can any of the company-specific risk be diversified away by investing in both Siamgas and Star Petroleum 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 Star Petroleum 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 Star Petroleum Refining, you can compare the effects of market volatilities on Siamgas and Star Petroleum 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 Star Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Star Petroleum.
Diversification Opportunities for Siamgas and Star Petroleum
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Siamgas and Star is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas and Petrochemicals and Star Petroleum Refining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Star Petroleum Refining 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 Star Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Star Petroleum Refining has no effect on the direction of Siamgas i.e., Siamgas and Star Petroleum go up and down completely randomly.
Pair Corralation between Siamgas and Star Petroleum
Assuming the 90 days trading horizon Siamgas and Petrochemicals is expected to under-perform the Star Petroleum. But the stock apears to be less risky and, when comparing its historical volatility, Siamgas and Petrochemicals is 2.84 times less risky than Star Petroleum. The stock trades about -0.03 of its potential returns per unit of risk. The Star Petroleum Refining is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 655.00 in Star Petroleum Refining on September 4, 2024 and sell it today you would earn a total of 30.00 from holding Star Petroleum Refining or generate 4.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas and Petrochemicals vs. Star Petroleum Refining
Performance |
| Timeline |
| Siamgas and Petroche |
| Star Petroleum Refining |
Siamgas and Star Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Star Petroleum
The main advantage of trading using opposite Siamgas and Star Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Star Petroleum 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 Star Petroleum will offset losses from the drop in Star Petroleum's long position.| Siamgas vs. PTT Public | Siamgas vs. SCB X Public | Siamgas vs. The Siam Commercial | Siamgas vs. The Siam Cement |
| Star Petroleum vs. Thai Oil Public | Star Petroleum vs. IRPC Public | Star Petroleum vs. PTT Global Chemical | Star Petroleum vs. PTT Exploration and |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |