Correlation Between Siamgas and Morgan Stanley

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

Diversification Opportunities for Siamgas and Morgan Stanley

0.0

Correlation Coefficient

Siamgas  Morgan Stanley

Pay attention - limited upside

The 3 months correlation between Siamgas and Morgan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Morgan Stanley in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morgan Stanley 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 Morgan Stanley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morgan Stanley has no effect on the direction of Siamgas i.e., Siamgas and Morgan Stanley go up and down completely randomly.

Pair Corralation between Siamgas and Morgan Stanley

Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 3.97 times more return on investment than Morgan Stanley. However, Siamgas is 3.97 times more volatile than Morgan Stanley. It trades about 0.04 of its potential returns per unit of risk. Morgan Stanley is currently generating about 0.05 per unit of risk. If you would invest  11.00  in Siamgas And Petrochemicals on October 10, 2024 and sell it today you would earn a total of  7.00  from holding Siamgas And Petrochemicals or generate 63.64% return on investment over 90 days.

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

Siamgas And Petrochemicals  vs.  Morgan Stanley

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 current stock price uproar, may contribute to short-horizon losses for the private investors.

Morgan Stanley

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Morgan Stanley are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Morgan Stanley reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Siamgas and Morgan Stanley

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

The idea behind Siamgas And Petrochemicals and Morgan Stanley 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.