Correlation Between SCANDMEDICAL SOLDK-040 and Siamgas

Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 and Siamgas into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and Siamgas And Petrochemicals, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 with a short position of Siamgas. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK-040 and Siamgas.

Diversification Opportunities for SCANDMEDICAL SOLDK-040 and Siamgas

-0.1

Correlation Coefficient

SCANDMEDICAL SOLDK-040  Siamgas

Good diversification

The 3 months correlation between SCANDMEDICAL and Siamgas is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK-040 i.e., SCANDMEDICAL SOLDK-040 and Siamgas go up and down completely randomly.

Pair Corralation between SCANDMEDICAL SOLDK-040 and Siamgas

Assuming the 90 days horizon SCANDMEDICAL SOLDK-040 is expected to generate 1.44 times less return on investment than Siamgas. In addition to that, SCANDMEDICAL SOLDK-040 is 1.1 times more volatile than Siamgas And Petrochemicals. It trades about 0.03 of its total potential returns per unit of risk. Siamgas And Petrochemicals is currently generating about 0.04 per unit of volatility. If you would invest  11.00  in Siamgas And Petrochemicals on September 4, 2024 and sell it today you would earn a total of  7.00  from holding Siamgas And Petrochemicals or generate 63.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.79%
Values	Daily Returns

SCANDMEDICAL SOLDK 040  vs.  Siamgas And Petrochemicals

SCANDMEDICAL SOLDK 040

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SCANDMEDICAL SOLDK 040 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SCANDMEDICAL SOLDK-040 is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Siamgas And Petroche

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Siamgas And Petrochemicals are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Siamgas unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SCANDMEDICAL SOLDK-040 and Siamgas

The main advantage of trading using opposite SCANDMEDICAL SOLDK-040 and Siamgas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK 040 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.