Correlation Between Siamgas and Ping An

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

Diversification Opportunities for Siamgas and Ping An

-0.15

Correlation Coefficient

Siamgas  Ping An

Good diversification

The 3 months correlation between Siamgas and Ping is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and Ping An Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ping An Insurance 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 Ping An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ping An Insurance has no effect on the direction of Siamgas i.e., Siamgas and Ping An go up and down completely randomly.

Pair Corralation between Siamgas and Ping An

Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 3.18 times more return on investment than Ping An. However, Siamgas is 3.18 times more volatile than Ping An Insurance. It trades about 0.02 of its potential returns per unit of risk. Ping An Insurance is currently generating about 0.03 per unit of risk. If you would invest  17.00  in Siamgas And Petrochemicals on December 22, 2024 and sell it today you would lose (1.00) from holding Siamgas And Petrochemicals or give up 5.88% of portfolio value over 90 days.

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

Siamgas And Petrochemicals  vs.  Ping An Insurance

Siamgas And Petroche

Risk-Adjusted Performance

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 fragile basic indicators, Siamgas may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Ping An Insurance

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ping An Insurance are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Ping An is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Siamgas and Ping An

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

The idea behind Siamgas And Petrochemicals and Ping An Insurance 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.