Correlation Between Siamgas and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Siamgas and Thai Oil 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 Thai Oil 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 Thai Oil Public, you can compare the effects of market volatilities on Siamgas and Thai Oil 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 Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Thai Oil.
Diversification Opportunities for Siamgas and Thai Oil
Good diversification
The 3 months correlation between Siamgas and Thai is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas and Petrochemicals and Thai Oil Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Oil 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 Thai Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Oil Public has no effect on the direction of Siamgas i.e., Siamgas and Thai Oil go up and down completely randomly.
Pair Corralation between Siamgas and Thai Oil
Assuming the 90 days trading horizon Siamgas and Petrochemicals is expected to generate 0.47 times more return on investment than Thai Oil. However, Siamgas and Petrochemicals is 2.11 times less risky than Thai Oil. It trades about -0.03 of its potential returns per unit of risk. Thai Oil Public is currently generating about -0.37 per unit of risk. If you would invest 720.00 in Siamgas and Petrochemicals on September 4, 2024 and sell it today you would lose (5.00) from holding Siamgas and Petrochemicals or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas and Petrochemicals vs. Thai Oil Public
Performance |
| Timeline |
| Siamgas and Petroche |
| Thai Oil Public |
Siamgas and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and Thai Oil
The main advantage of trading using opposite Siamgas and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, Thai Oil 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 Thai Oil will offset losses from the drop in Thai Oil's long position.| Siamgas vs. PTT Public | Siamgas vs. SCB X Public | Siamgas vs. The Siam Commercial | Siamgas vs. The Siam Cement |
| Thai Oil vs. PTT Public | Thai Oil vs. SCB X Public | Thai Oil vs. The Siam Commercial | Thai Oil 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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