Correlation Between Siamgas and INNELEC MULTIMMINHEO153

Can any of the company-specific risk be diversified away by investing in both Siamgas and INNELEC MULTIMMINHEO153 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 Siamgas and INNELEC MULTIMMINHEO153 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Siamgas And Petrochemicals and INNELEC MULTIMMINHEO153, you can compare the effects of market volatilities on Siamgas and INNELEC MULTIMMINHEO153 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 Siamgas with a short position of INNELEC MULTIMMINHEO153. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and INNELEC MULTIMMINHEO153.

Diversification Opportunities for Siamgas and INNELEC MULTIMMINHEO153

-0.21

Correlation Coefficient

Siamgas  INNELEC MULTIMMINHEO153

Very good diversification

The 3 months correlation between Siamgas and INNELEC is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and INNELEC MULTIMMINHEO153 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INNELEC MULTIMMINHEO153 and Siamgas 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 Siamgas And Petrochemicals are associated (or correlated) with INNELEC MULTIMMINHEO153. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INNELEC MULTIMMINHEO153 has no effect on the direction of Siamgas i.e., Siamgas and INNELEC MULTIMMINHEO153 go up and down completely randomly.

Pair Corralation between Siamgas and INNELEC MULTIMMINHEO153

Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 1.68 times more return on investment than INNELEC MULTIMMINHEO153. However, Siamgas is 1.68 times more volatile than INNELEC MULTIMMINHEO153. It trades about 0.04 of its potential returns per unit of risk. INNELEC MULTIMMINHEO153 is currently generating about -0.2 per unit of risk. If you would invest  16.00  in Siamgas And Petrochemicals on September 3, 2024 and sell it today you would earn a total of  1.00  from holding Siamgas And Petrochemicals or generate 6.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Siamgas And Petrochemicals  vs.  INNELEC MULTIMMINHEO153

Siamgas And Petroche

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Siamgas And Petrochemicals are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Siamgas may actually be approaching a critical reversion point that can send shares even higher in January 2025.

INNELEC MULTIMMINHEO153

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INNELEC MULTIMMINHEO153 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Siamgas and INNELEC MULTIMMINHEO153

The main advantage of trading using opposite Siamgas and INNELEC MULTIMMINHEO153 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, INNELEC MULTIMMINHEO153 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 INNELEC MULTIMMINHEO153 will offset losses from the drop in INNELEC MULTIMMINHEO153's long position.

The idea behind Siamgas And Petrochemicals and INNELEC MULTIMMINHEO153 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.