Correlation Between Star Petroleum and Praram 9
Can any of the company-specific risk be diversified away by investing in both Star Petroleum and Praram 9 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 Star Petroleum and Praram 9 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Petroleum Refining and Praram 9 Hospital, you can compare the effects of market volatilities on Star Petroleum and Praram 9 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 Star Petroleum with a short position of Praram 9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Petroleum and Praram 9.
Diversification Opportunities for Star Petroleum and Praram 9
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Star and Praram is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Star Petroleum Refining and Praram 9 Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Praram 9 Hospital and Star Petroleum 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 Star Petroleum Refining are associated (or correlated) with Praram 9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Praram 9 Hospital has no effect on the direction of Star Petroleum i.e., Star Petroleum and Praram 9 go up and down completely randomly.
Pair Corralation between Star Petroleum and Praram 9
Assuming the 90 days trading horizon Star Petroleum Refining is expected to under-perform the Praram 9. In addition to that, Star Petroleum is 2.64 times more volatile than Praram 9 Hospital. It trades about -0.35 of its total potential returns per unit of risk. Praram 9 Hospital is currently generating about 0.05 per unit of volatility. If you would invest 2,475 in Praram 9 Hospital on September 12, 2024 and sell it today you would earn a total of 50.00 from holding Praram 9 Hospital or generate 2.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
Star Petroleum Refining vs. Praram 9 Hospital
Performance |
| Timeline |
| Star Petroleum Refining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Praram 9 Hospital |
Star Petroleum and Praram 9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Petroleum and Praram 9
The main advantage of trading using opposite Star Petroleum and Praram 9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Petroleum position performs unexpectedly, Praram 9 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 Praram 9 will offset losses from the drop in Praram 9's long position.| Star Petroleum vs. Siri Prime Office | Star Petroleum vs. Quality Houses Property | Star Petroleum vs. The Erawan Group | Star Petroleum vs. Jay Mart Public |
| Praram 9 vs. Bangkok Dusit Medical | Praram 9 vs. Bumrungrad Hospital Public | Praram 9 vs. Bangkok Chain Hospital | Praram 9 vs. Rajthanee Hospital Public |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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