Correlation Between Siamgas and Laureate Education

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

Diversification Opportunities for Siamgas and Laureate Education

0.23

Correlation Coefficient

Siamgas  Laureate Education

Modest diversification

The 3 months correlation between Siamgas and Laureate is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Laureate Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Laureate Education 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 Laureate Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Laureate Education has no effect on the direction of Siamgas i.e., Siamgas and Laureate Education go up and down completely randomly.

Pair Corralation between Siamgas and Laureate Education

If you would invest  1,760  in Laureate Education on October 26, 2024 and sell it today you would earn a total of  30.00  from holding Laureate Education or generate 1.7% 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.  Laureate Education

Siamgas And Petroche

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Siamgas And Petrochemicals has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Laureate Education

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Laureate Education are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Laureate Education reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Siamgas and Laureate Education

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

The idea behind Siamgas And Petrochemicals and Laureate Education 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.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.