Correlation Between TPI Polene and Siamgas
Can any of the company-specific risk be diversified away by investing in both TPI Polene and Siamgas 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 TPI Polene and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TPI Polene Power and Siamgas and Petrochemicals, you can compare the effects of market volatilities on TPI Polene and Siamgas 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 TPI Polene with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of TPI Polene and Siamgas.
Diversification Opportunities for TPI Polene and Siamgas
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TPI and Siamgas is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding TPI Polene Power and Siamgas and Petrochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siamgas and Petroche and TPI Polene 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 TPI Polene Power are associated (or correlated) with Siamgas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siamgas and Petroche has no effect on the direction of TPI Polene i.e., TPI Polene and Siamgas go up and down completely randomly.
Pair Corralation between TPI Polene and Siamgas
Assuming the 90 days trading horizon TPI Polene Power is expected to under-perform the Siamgas. But the stock apears to be less risky and, when comparing its historical volatility, TPI Polene Power is 77.21 times less risky than Siamgas. The stock trades about -0.04 of its potential returns per unit of risk. The Siamgas and Petrochemicals is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 763.00 in Siamgas and Petrochemicals on September 3, 2024 and sell it today you would lose (53.00) from holding Siamgas and Petrochemicals or give up 6.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TPI Polene Power vs. Siamgas and Petrochemicals
Performance |
| Timeline |
| TPI Polene Power |
| Siamgas and Petroche |
TPI Polene and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TPI Polene and Siamgas
The main advantage of trading using opposite TPI Polene and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TPI Polene position performs unexpectedly, Siamgas 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 Siamgas will offset losses from the drop in Siamgas' long position.| TPI Polene vs. Ratch Group Public | TPI Polene vs. BCPG Public | TPI Polene vs. Gulf Energy Development | TPI Polene vs. BTS Group Holdings |
| Siamgas vs. PTT Public | Siamgas vs. SCB X Public | Siamgas vs. The Siam Commercial | Siamgas 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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