Correlation Between Sanyo Chemical and Siamgas
Can any of the company-specific risk be diversified away by investing in both Sanyo Chemical 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 Sanyo Chemical and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sanyo Chemical Industries and Siamgas And Petrochemicals, you can compare the effects of market volatilities on Sanyo Chemical 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 Sanyo Chemical with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sanyo Chemical and Siamgas.
Diversification Opportunities for Sanyo Chemical and Siamgas
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sanyo and Siamgas is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sanyo Chemical Industries 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 Sanyo Chemical 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 Sanyo Chemical Industries 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 Sanyo Chemical i.e., Sanyo Chemical and Siamgas go up and down completely randomly.
Pair Corralation between Sanyo Chemical and Siamgas
Assuming the 90 days horizon Sanyo Chemical is expected to generate 12.05 times less return on investment than Siamgas. But when comparing it to its historical volatility, Sanyo Chemical Industries is 3.48 times less risky than Siamgas. It trades about 0.0 of its potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 17.00 in Siamgas And Petrochemicals on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Siamgas And Petrochemicals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sanyo Chemical Industries vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| Sanyo Chemical Industries |
| Siamgas And Petroche |
Sanyo Chemical and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sanyo Chemical and Siamgas
The main advantage of trading using opposite Sanyo Chemical and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sanyo Chemical 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.| Sanyo Chemical vs. The Sherwin Williams | Sanyo Chemical vs. SIKA AG UNSPADR | Sanyo Chemical vs. LyondellBasell Industries NV | Sanyo Chemical vs. Albemarle |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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