Correlation Between Siamgas and ROMERIKE SPAREBANK

Can any of the company-specific risk be diversified away by investing in both Siamgas and ROMERIKE SPAREBANK 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 ROMERIKE SPAREBANK 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 ROMERIKE SPAREBANK NK, you can compare the effects of market volatilities on Siamgas and ROMERIKE SPAREBANK 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 ROMERIKE SPAREBANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and ROMERIKE SPAREBANK.

Diversification Opportunities for Siamgas and ROMERIKE SPAREBANK

-0.02

Correlation Coefficient

Siamgas  ROMERIKE SPAREBANK

Good diversification

The 3 months correlation between Siamgas and ROMERIKE is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas And Petrochemicals and ROMERIKE SPAREBANK NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROMERIKE SPAREBANK 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 ROMERIKE SPAREBANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROMERIKE SPAREBANK has no effect on the direction of Siamgas i.e., Siamgas and ROMERIKE SPAREBANK go up and down completely randomly.

Pair Corralation between Siamgas and ROMERIKE SPAREBANK

Assuming the 90 days trading horizon Siamgas And Petrochemicals is expected to generate 3.2 times more return on investment than ROMERIKE SPAREBANK. However, Siamgas is 3.2 times more volatile than ROMERIKE SPAREBANK NK. It trades about 0.01 of its potential returns per unit of risk. ROMERIKE SPAREBANK NK is currently generating about 0.02 per unit of risk. If you would invest  18.00  in Siamgas And Petrochemicals on September 23, 2024 and sell it today you would earn a total of  0.00  from holding Siamgas And Petrochemicals or generate 0.0% 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.  ROMERIKE SPAREBANK NK

Siamgas And Petroche

Risk-Adjusted Performance

1 of 100

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 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.

ROMERIKE SPAREBANK

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in ROMERIKE SPAREBANK NK are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, ROMERIKE SPAREBANK is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Siamgas and ROMERIKE SPAREBANK

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

The idea behind Siamgas And Petrochemicals and ROMERIKE SPAREBANK NK 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.