Correlation Between Strer SE and Siamgas

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Can any of the company-specific risk be diversified away by investing in both Strer SE 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 Strer SE and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Strer SE Co and Siamgas And Petrochemicals, you can compare the effects of market volatilities on Strer SE 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 Strer SE with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Strer SE and Siamgas.

Diversification Opportunities for Strer SE and Siamgas

StrerSiamgasDiversified AwayStrerSiamgasDiversified Away100%
0.07
  Correlation Coefficient

Significant diversification

The 3 months correlation between Strer and Siamgas is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Strer SE Co 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 Strer SE 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 Strer SE Co 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 Strer SE i.e., Strer SE and Siamgas go up and down completely randomly.

Pair Corralation between Strer SE and Siamgas

Assuming the 90 days trading horizon Strer SE is expected to generate 1.6 times less return on investment than Siamgas. In addition to that, Strer SE is 1.25 times more volatile than Siamgas And Petrochemicals. It trades about 0.05 of its total potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.09 per unit of volatility. If you would invest  17.00  in Siamgas And Petrochemicals on October 31, 2024 and sell it today you would earn a total of  2.00  from holding Siamgas And Petrochemicals or generate 11.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Strer SE Co  vs.  Siamgas And Petrochemicals

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -20-15-10-5
JavaScript chart by amCharts 3.21.15SAX 4QVA
       Timeline  
Strer SE 

Risk-Adjusted Performance

3 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Strer SE Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Strer SE may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan46485052545658
Siamgas And Petroche 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Siamgas And Petrochemicals are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Siamgas unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan0.160.1650.170.1750.180.1850.19

Strer SE and Siamgas Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.98-6.73-4.47-2.220.02.24.476.749.0111.28 0.020.030.040.050.06
JavaScript chart by amCharts 3.21.15SAX 4QVA
       Returns  

Pair Trading with Strer SE and Siamgas

The main advantage of trading using opposite Strer SE and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Strer SE 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 Strer SE Co 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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