Correlation Between Siamgas and Bilibili

Can any of the company-specific risk be diversified away by investing in both Siamgas and Bilibili 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 Bilibili 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 Bilibili, you can compare the effects of market volatilities on Siamgas and Bilibili 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 Bilibili. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and Bilibili.

Diversification Opportunities for Siamgas and Bilibili

0.39

Correlation Coefficient

Siamgas  Bilibili

Weak diversification

The 3 months correlation between Siamgas and Bilibili is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Bilibili in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bilibili 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 Bilibili. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bilibili has no effect on the direction of Siamgas i.e., Siamgas and Bilibili go up and down completely randomly.

Pair Corralation between Siamgas and Bilibili

Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 0.7 times more return on investment than Bilibili. However, Siamgas And Petrochemicals is 1.44 times less risky than Bilibili. It trades about 0.01 of its potential returns per unit of risk. Bilibili is currently generating about -0.13 per unit of risk. If you would invest  18.00  in Siamgas And Petrochemicals on October 6, 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

Siamgas And Petrochemicals  vs.  Bilibili

Siamgas And Petroche

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Siamgas And Petrochemicals are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Siamgas is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Bilibili

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Siamgas and Bilibili

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

The idea behind Siamgas And Petrochemicals and Bilibili 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.