Correlation Between Siamgas and MEDICAL FACILITIES

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

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

Diversification Opportunities for Siamgas and MEDICAL FACILITIES

-0.13

Correlation Coefficient

Siamgas  MEDICAL FACILITIES

Good diversification

The 3 months correlation between Siamgas and MEDICAL is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW and Siamgas 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 Siamgas And Petrochemicals are associated (or correlated) with MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of Siamgas i.e., Siamgas and MEDICAL FACILITIES go up and down completely randomly.

Pair Corralation between Siamgas and MEDICAL FACILITIES

Assuming the 90 days trading horizon Siamgas is expected to generate 4.67 times less return on investment than MEDICAL FACILITIES. In addition to that, Siamgas is 1.8 times more volatile than MEDICAL FACILITIES NEW. It trades about 0.02 of its total potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.14 per unit of volatility. If you would invest  886.00  in MEDICAL FACILITIES NEW on September 14, 2024 and sell it today you would earn a total of  164.00  from holding MEDICAL FACILITIES NEW or generate 18.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Siamgas And Petrochemicals  vs.  MEDICAL FACILITIES NEW

Siamgas And Petroche

Risk-Adjusted Performance

1 of 100

Insignificant

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 stable basic indicators, Siamgas is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

MEDICAL FACILITIES NEW

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MEDICAL FACILITIES NEW are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, MEDICAL FACILITIES reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Siamgas and MEDICAL FACILITIES

The main advantage of trading using opposite Siamgas and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.

The idea behind Siamgas And Petrochemicals and MEDICAL FACILITIES NEW 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.

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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.