Correlation Between Siamgas and TOA PAINT
Can any of the company-specific risk be diversified away by investing in both Siamgas and TOA PAINT 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 TOA PAINT 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 TOA PAINT, you can compare the effects of market volatilities on Siamgas and TOA PAINT 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 TOA PAINT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and TOA PAINT.
Diversification Opportunities for Siamgas and TOA PAINT
Weak diversification
The 3 months correlation between Siamgas and TOA is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas and Petrochemicals and TOA PAINT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TOA PAINT 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 TOA PAINT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TOA PAINT has no effect on the direction of Siamgas i.e., Siamgas and TOA PAINT go up and down completely randomly.
Pair Corralation between Siamgas and TOA PAINT
Assuming the 90 days trading horizon Siamgas and Petrochemicals is expected to generate 22.85 times more return on investment than TOA PAINT. However, Siamgas is 22.85 times more volatile than TOA PAINT. It trades about 0.1 of its potential returns per unit of risk. TOA PAINT is currently generating about -0.15 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas and Petrochemicals vs. TOA PAINT
Performance |
| Timeline |
| Siamgas and Petroche |
| TOA PAINT |
Siamgas and TOA PAINT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and TOA PAINT
The main advantage of trading using opposite Siamgas and TOA PAINT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, TOA PAINT 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 TOA PAINT will offset losses from the drop in TOA PAINT's long position.| Siamgas vs. Bangchak Public | Siamgas vs. IRPC Public | Siamgas vs. PTT Exploration and | Siamgas vs. Star Petroleum Refining |
| TOA PAINT vs. Srinanaporn Marketing Public | TOA PAINT vs. Sriracha Construction Public | TOA PAINT vs. CIMB Thai Bank | TOA PAINT vs. Asia Medical Agricultural |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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