Correlation Between SIEM OFFSHORE and SANOK RUBBER
Can any of the company-specific risk be diversified away by investing in both SIEM OFFSHORE and SANOK RUBBER 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 SIEM OFFSHORE and SANOK RUBBER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIEM OFFSHORE NEW and SANOK RUBBER ZY, you can compare the effects of market volatilities on SIEM OFFSHORE and SANOK RUBBER 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 SIEM OFFSHORE with a short position of SANOK RUBBER. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIEM OFFSHORE and SANOK RUBBER.
Diversification Opportunities for SIEM OFFSHORE and SANOK RUBBER
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SIEM and SANOK is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding SIEM OFFSHORE NEW and SANOK RUBBER ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOK RUBBER ZY and SIEM OFFSHORE 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 SIEM OFFSHORE NEW are associated (or correlated) with SANOK RUBBER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOK RUBBER ZY has no effect on the direction of SIEM OFFSHORE i.e., SIEM OFFSHORE and SANOK RUBBER go up and down completely randomly.
Pair Corralation between SIEM OFFSHORE and SANOK RUBBER
Assuming the 90 days trading horizon SIEM OFFSHORE NEW is expected to under-perform the SANOK RUBBER. In addition to that, SIEM OFFSHORE is 1.85 times more volatile than SANOK RUBBER ZY. It trades about -0.04 of its total potential returns per unit of risk. SANOK RUBBER ZY is currently generating about 0.23 per unit of volatility. If you would invest 445.00 in SANOK RUBBER ZY on October 8, 2024 and sell it today you would earn a total of 62.00 from holding SANOK RUBBER ZY or generate 13.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
SIEM OFFSHORE NEW vs. SANOK RUBBER ZY
Performance |
Timeline |
SIEM OFFSHORE NEW |
SANOK RUBBER ZY |
SIEM OFFSHORE and SANOK RUBBER Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SIEM OFFSHORE and SANOK RUBBER
The main advantage of trading using opposite SIEM OFFSHORE and SANOK RUBBER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIEM OFFSHORE position performs unexpectedly, SANOK RUBBER 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 SANOK RUBBER will offset losses from the drop in SANOK RUBBER's long position.SIEM OFFSHORE vs. Enbridge | SIEM OFFSHORE vs. Cheniere Energy | SIEM OFFSHORE vs. Pembina Pipeline Corp | SIEM OFFSHORE vs. Superior Plus Corp |
SANOK RUBBER vs. 24SEVENOFFICE GROUP AB | SANOK RUBBER vs. UNITED UTILITIES GR | SANOK RUBBER vs. Performance Food Group | SANOK RUBBER vs. Addus HomeCare |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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