Correlation Between WT OFFSHORE and Siamgas

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

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

Diversification Opportunities for WT OFFSHORE and Siamgas

0.15

Correlation Coefficient

WT OFFSHORE  Siamgas

Average diversification

The 3 months correlation between UWV and Siamgas is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding WT OFFSHORE 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 WT 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 WT OFFSHORE 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 WT OFFSHORE i.e., WT OFFSHORE and Siamgas go up and down completely randomly.

Pair Corralation between WT OFFSHORE and Siamgas

Assuming the 90 days trading horizon WT OFFSHORE is expected to generate 2.13 times less return on investment than Siamgas. But when comparing it to its historical volatility, WT OFFSHORE is 2.02 times less risky than Siamgas. It trades about 0.02 of its potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  17.00  in Siamgas And Petrochemicals on December 21, 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 Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

WT OFFSHORE  vs.  Siamgas And Petrochemicals

WT OFFSHORE

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in WT OFFSHORE are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, WT OFFSHORE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

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

Pair Trading with WT OFFSHORE and Siamgas

The main advantage of trading using opposite WT OFFSHORE and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WT OFFSHORE 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 WT OFFSHORE 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.