Correlation Between AIRA Factoring and Bangkok Sheet
Can any of the company-specific risk be diversified away by investing in both AIRA Factoring and Bangkok Sheet 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 AIRA Factoring and Bangkok Sheet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AIRA Factoring Public and Bangkok Sheet Metal, you can compare the effects of market volatilities on AIRA Factoring and Bangkok Sheet 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 AIRA Factoring with a short position of Bangkok Sheet. Check out your portfolio center. Please also check ongoing floating volatility patterns of AIRA Factoring and Bangkok Sheet.
Diversification Opportunities for AIRA Factoring and Bangkok Sheet
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between AIRA and Bangkok is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding AIRA Factoring Public and Bangkok Sheet Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Sheet Metal and AIRA Factoring 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 AIRA Factoring Public are associated (or correlated) with Bangkok Sheet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Sheet Metal has no effect on the direction of AIRA Factoring i.e., AIRA Factoring and Bangkok Sheet go up and down completely randomly.
Pair Corralation between AIRA Factoring and Bangkok Sheet
Assuming the 90 days horizon AIRA Factoring Public is expected to under-perform the Bangkok Sheet. But the stock apears to be less risky and, when comparing its historical volatility, AIRA Factoring Public is 12.75 times less risky than Bangkok Sheet. The stock trades about -0.01 of its potential returns per unit of risk. The Bangkok Sheet Metal is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 428.00 in Bangkok Sheet Metal on September 13, 2024 and sell it today you would lose (122.00) from holding Bangkok Sheet Metal or give up 28.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AIRA Factoring Public vs. Bangkok Sheet Metal
Performance |
| Timeline |
| AIRA Factoring Public |
| Bangkok Sheet Metal |
AIRA Factoring and Bangkok Sheet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AIRA Factoring and Bangkok Sheet
The main advantage of trading using opposite AIRA Factoring and Bangkok Sheet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AIRA Factoring position performs unexpectedly, Bangkok Sheet 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 Sheet will offset losses from the drop in Bangkok Sheet's long position.| AIRA Factoring vs. Srisawad Power 1979 | AIRA Factoring vs. Muangthai Capital Public | AIRA Factoring vs. Micro Leasing Public | AIRA Factoring vs. Krungthai Card PCL |
| Bangkok Sheet vs. Chewathai Public | Bangkok Sheet vs. AIRA Factoring Public | Bangkok Sheet vs. Cho Thavee Public | Bangkok Sheet vs. G Capital Public |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |