Correlation Between CHRYSALIS INVESTMENTS and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both CHRYSALIS INVESTMENTS and Bangkok Bank 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 CHRYSALIS INVESTMENTS and Bangkok Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHRYSALIS INVESTMENTS LTD and Bangkok Bank Public, you can compare the effects of market volatilities on CHRYSALIS INVESTMENTS and Bangkok Bank 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 CHRYSALIS INVESTMENTS with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHRYSALIS INVESTMENTS and Bangkok Bank.
Diversification Opportunities for CHRYSALIS INVESTMENTS and Bangkok Bank
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between CHRYSALIS and Bangkok is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding CHRYSALIS INVESTMENTS LTD and Bangkok Bank Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Bank Public and CHRYSALIS INVESTMENTS 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 CHRYSALIS INVESTMENTS LTD are associated (or correlated) with Bangkok Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Bank Public has no effect on the direction of CHRYSALIS INVESTMENTS i.e., CHRYSALIS INVESTMENTS and Bangkok Bank go up and down completely randomly.
Pair Corralation between CHRYSALIS INVESTMENTS and Bangkok Bank
Assuming the 90 days horizon CHRYSALIS INVESTMENTS LTD is expected to generate 1.13 times more return on investment than Bangkok Bank. However, CHRYSALIS INVESTMENTS is 1.13 times more volatile than Bangkok Bank Public. It trades about 0.29 of its potential returns per unit of risk. Bangkok Bank Public is currently generating about 0.09 per unit of risk. If you would invest 115.00 in CHRYSALIS INVESTMENTS LTD on October 9, 2024 and sell it today you would earn a total of 11.00 from holding CHRYSALIS INVESTMENTS LTD or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHRYSALIS INVESTMENTS LTD vs. Bangkok Bank Public
Performance |
| Timeline |
| CHRYSALIS INVESTMENTS LTD |
| Bangkok Bank Public |
CHRYSALIS INVESTMENTS and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHRYSALIS INVESTMENTS and Bangkok Bank
The main advantage of trading using opposite CHRYSALIS INVESTMENTS and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHRYSALIS INVESTMENTS position performs unexpectedly, Bangkok Bank 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 Bangkok Bank will offset losses from the drop in Bangkok Bank's long position.| CHRYSALIS INVESTMENTS vs. Apple Inc | CHRYSALIS INVESTMENTS vs. Apple Inc | CHRYSALIS INVESTMENTS vs. Apple Inc | CHRYSALIS INVESTMENTS vs. Apple Inc |
| Bangkok Bank vs. Sumitomo Rubber Industries | Bangkok Bank vs. Sanyo Chemical Industries | Bangkok Bank vs. SEKISUI CHEMICAL | Bangkok Bank vs. GOODYEAR T RUBBER |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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