Correlation Between Vastned Retail and Siamgas
Can any of the company-specific risk be diversified away by investing in both Vastned Retail 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 Vastned Retail and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vastned Retail NV and Siamgas And Petrochemicals, you can compare the effects of market volatilities on Vastned Retail 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 Vastned Retail with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vastned Retail and Siamgas.
Diversification Opportunities for Vastned Retail and Siamgas
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Vastned and Siamgas is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Vastned Retail NV 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 Vastned Retail 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 Vastned Retail NV 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 Vastned Retail i.e., Vastned Retail and Siamgas go up and down completely randomly.
Pair Corralation between Vastned Retail and Siamgas
Assuming the 90 days horizon Vastned Retail NV is expected to generate 0.29 times more return on investment than Siamgas. However, Vastned Retail NV is 3.41 times less risky than Siamgas. It trades about -0.09 of its potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about -0.03 per unit of risk. If you would invest 2,261 in Vastned Retail NV on September 13, 2024 and sell it today you would lose (76.00) from holding Vastned Retail NV or give up 3.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vastned Retail NV vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| Vastned Retail NV |
| Siamgas And Petroche |
Vastned Retail and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vastned Retail and Siamgas
The main advantage of trading using opposite Vastned Retail and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vastned Retail 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.| Vastned Retail vs. Guidewire Software | Vastned Retail vs. Evolution Mining Limited | Vastned Retail vs. TAL Education Group | Vastned Retail vs. MAGIC SOFTWARE ENTR |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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