Correlation Between 3BB INTERNET and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both 3BB INTERNET and Bangkok Dusit 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 3BB INTERNET and Bangkok Dusit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 3BB INTERNET INFRASTRUCTURE and Bangkok Dusit Medical, you can compare the effects of market volatilities on 3BB INTERNET and Bangkok Dusit 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 3BB INTERNET with a short position of Bangkok Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of 3BB INTERNET and Bangkok Dusit.
Diversification Opportunities for 3BB INTERNET and Bangkok Dusit
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 3BB and Bangkok is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding 3BB INTERNET INFRASTRUCTURE and Bangkok Dusit Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Dusit Medical and 3BB INTERNET 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 3BB INTERNET INFRASTRUCTURE are associated (or correlated) with Bangkok Dusit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Dusit Medical has no effect on the direction of 3BB INTERNET i.e., 3BB INTERNET and Bangkok Dusit go up and down completely randomly.
Pair Corralation between 3BB INTERNET and Bangkok Dusit
Assuming the 90 days trading horizon 3BB INTERNET is expected to generate 1.17 times less return on investment than Bangkok Dusit. But when comparing it to its historical volatility, 3BB INTERNET INFRASTRUCTURE is 1.01 times less risky than Bangkok Dusit. It trades about 0.01 of its potential returns per unit of risk. Bangkok Dusit Medical is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,513 in Bangkok Dusit Medical on September 3, 2024 and sell it today you would earn a total of 12.00 from holding Bangkok Dusit Medical or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.58% |
| Values | Daily Returns |
3BB INTERNET INFRASTRUCTURE vs. Bangkok Dusit Medical
Performance |
| Timeline |
| 3BB INTERNET INFRAST |
| Bangkok Dusit Medical |
3BB INTERNET and Bangkok Dusit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 3BB INTERNET and Bangkok Dusit
The main advantage of trading using opposite 3BB INTERNET and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 3BB INTERNET position performs unexpectedly, Bangkok Dusit 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 Dusit will offset losses from the drop in Bangkok Dusit's long position.| 3BB INTERNET vs. Asia Medical Agricultural | 3BB INTERNET vs. CENTRAL RETAIL P | 3BB INTERNET vs. 2S Metal Public | 3BB INTERNET vs. ALL ENERGY UTILITIES |
| Bangkok Dusit vs. Bumrungrad Hospital Public | Bangkok Dusit vs. Bangkok Chain Hospital | Bangkok Dusit vs. Ramkhamhaeng Hospital Public | Bangkok Dusit vs. Vibhavadi Medical Center |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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