Correlation Between YASKAWA ELEC and Siamgas
Can any of the company-specific risk be diversified away by investing in both YASKAWA ELEC 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 YASKAWA ELEC and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YASKAWA ELEC UNSP and Siamgas And Petrochemicals, you can compare the effects of market volatilities on YASKAWA ELEC 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 YASKAWA ELEC with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of YASKAWA ELEC and Siamgas.
Diversification Opportunities for YASKAWA ELEC and Siamgas
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between YASKAWA and Siamgas is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding YASKAWA ELEC UNSP 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 YASKAWA ELEC 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 YASKAWA ELEC UNSP 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 YASKAWA ELEC i.e., YASKAWA ELEC and Siamgas go up and down completely randomly.
Pair Corralation between YASKAWA ELEC and Siamgas
Assuming the 90 days trading horizon YASKAWA ELEC UNSP is expected to generate 2.25 times more return on investment than Siamgas. However, YASKAWA ELEC is 2.25 times more volatile than Siamgas And Petrochemicals. It trades about 0.2 of its potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.22 per unit of risk. If you would invest 4,740 in YASKAWA ELEC UNSP on November 4, 2024 and sell it today you would earn a total of 560.00 from holding YASKAWA ELEC UNSP or generate 11.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
YASKAWA ELEC UNSP vs. Siamgas And Petrochemicals
Performance |
| Timeline |
| YASKAWA ELEC UNSP |
| Siamgas And Petroche |
YASKAWA ELEC and Siamgas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YASKAWA ELEC and Siamgas
The main advantage of trading using opposite YASKAWA ELEC and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YASKAWA ELEC 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.| YASKAWA ELEC vs. Delta Electronics Public | YASKAWA ELEC vs. Plug Power | YASKAWA ELEC vs. VERTIV HOLCL A | YASKAWA ELEC vs. Varta AG |
| Siamgas vs. VIRGIN WINES UK | Siamgas vs. Grand Canyon Education | Siamgas vs. CHINA TONTINE WINES | Siamgas vs. betterU Education Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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