Correlation Between Packaging and Siamgas

Can any of the company-specific risk be diversified away by investing in both Packaging 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 Packaging and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Packaging of and Siamgas And Petrochemicals, you can compare the effects of market volatilities on Packaging 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 Packaging with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Packaging and Siamgas.

Diversification Opportunities for Packaging and Siamgas

0.34

Correlation Coefficient

Packaging  Siamgas

Weak diversification

The 3 months correlation between Packaging and Siamgas is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Packaging of 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 Packaging 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 Packaging of 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 Packaging i.e., Packaging and Siamgas go up and down completely randomly.

Pair Corralation between Packaging and Siamgas

If you would invest  21,740  in Packaging of on October 25, 2024 and sell it today you would earn a total of  1,120  from holding Packaging of or generate 5.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Packaging of  vs.  Siamgas And Petrochemicals

Packaging

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Packaging of are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Packaging may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Siamgas And Petroche

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Siamgas And Petrochemicals are ranked lower than 4 (%) 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 February 2025.

Pair Trading with Packaging and Siamgas

The main advantage of trading using opposite Packaging and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Packaging 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.

The idea behind Packaging of and Siamgas And Petrochemicals 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.