Correlation Between Asia Fiber and Bangkok Union
Can any of the company-specific risk be diversified away by investing in both Asia Fiber and Bangkok Union 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 Asia Fiber and Bangkok Union into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Asia Fiber Public and Bangkok Union Insurance, you can compare the effects of market volatilities on Asia Fiber and Bangkok Union 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 Asia Fiber with a short position of Bangkok Union. Check out your portfolio center. Please also check ongoing floating volatility patterns of Asia Fiber and Bangkok Union.
Diversification Opportunities for Asia Fiber and Bangkok Union
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Asia and Bangkok is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Asia Fiber Public and Bangkok Union Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Union Insurance and Asia Fiber 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 Asia Fiber Public are associated (or correlated) with Bangkok Union. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Union Insurance has no effect on the direction of Asia Fiber i.e., Asia Fiber and Bangkok Union go up and down completely randomly.
Pair Corralation between Asia Fiber and Bangkok Union
Assuming the 90 days trading horizon Asia Fiber is expected to generate 1.21 times less return on investment than Bangkok Union. But when comparing it to its historical volatility, Asia Fiber Public is 1.0 times less risky than Bangkok Union. It trades about 0.04 of its potential returns per unit of risk. Bangkok Union Insurance is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,216 in Bangkok Union Insurance on October 13, 2024 and sell it today you would earn a total of 394.00 from holding Bangkok Union Insurance or generate 32.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Asia Fiber Public vs. Bangkok Union Insurance
Performance |
| Timeline |
| Asia Fiber Public |
| Bangkok Union Insurance |
Asia Fiber and Bangkok Union Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Asia Fiber and Bangkok Union
The main advantage of trading using opposite Asia Fiber and Bangkok Union positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Asia Fiber position performs unexpectedly, Bangkok Union 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 Union will offset losses from the drop in Bangkok Union's long position.| Asia Fiber vs. AJ Plast Public | Asia Fiber vs. Aikchol Hospital Public | Asia Fiber vs. Boutique Newcity Public | Asia Fiber vs. Allianz Ayudhya Capital |
| Bangkok Union vs. Allianz Ayudhya Capital | Bangkok Union vs. Boutique Newcity Public | Bangkok Union vs. AJ Plast Public | Bangkok Union vs. Asia Fiber 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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