Correlation Between LANDSEA GREEN and Siamgas
Can any of the company-specific risk be diversified away by investing in both LANDSEA GREEN and Siamgas 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 LANDSEA GREEN and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LANDSEA GREEN MANAGEMENT and Siamgas And Petrochemicals, you can compare the effects of market volatilities on LANDSEA GREEN and Siamgas 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 LANDSEA GREEN with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of LANDSEA GREEN and Siamgas.
Diversification Opportunities for LANDSEA GREEN and Siamgas
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LANDSEA and Siamgas is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding LANDSEA GREEN MANAGEMENT and Siamgas And Petrochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siamgas And Petroche and LANDSEA GREEN 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 LANDSEA GREEN MANAGEMENT are associated (or correlated) with Siamgas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siamgas And Petroche has no effect on the direction of LANDSEA GREEN i.e., LANDSEA GREEN and Siamgas go up and down completely randomly.
Pair Corralation between LANDSEA GREEN and Siamgas
Assuming the 90 days horizon LANDSEA GREEN MANAGEMENT is expected to generate 93.88 times more return on investment than Siamgas. However, LANDSEA GREEN is 93.88 times more volatile than Siamgas And Petrochemicals. It trades about 0.16 of its potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.06 per unit of risk. If you would invest 0.10 in LANDSEA GREEN MANAGEMENT on November 18, 2024 and sell it today you would earn a total of 0.00 from holding LANDSEA GREEN MANAGEMENT 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 |
LANDSEA GREEN MANAGEMENT vs. Siamgas And Petrochemicals
Performance |
Timeline |
LANDSEA GREEN MANAGEMENT |
Siamgas And Petroche |
LANDSEA GREEN and Siamgas Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with LANDSEA GREEN and Siamgas
The main advantage of trading using opposite LANDSEA GREEN and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LANDSEA GREEN position performs unexpectedly, Siamgas 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 Siamgas will offset losses from the drop in Siamgas' long position.LANDSEA GREEN vs. Agilent Technologies | ||
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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