Correlation Between AP Public and Bangkok Bank
Can any of the company-specific risk be diversified away by investing in both AP Public 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 AP Public and Bangkok Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Public and Bangkok Bank Public, you can compare the effects of market volatilities on AP Public 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 AP Public with a short position of Bangkok Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Public and Bangkok Bank.
Diversification Opportunities for AP Public and Bangkok Bank
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AP Public and Bangkok is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding AP Public 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 AP Public 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 AP Public 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 AP Public i.e., AP Public and Bangkok Bank go up and down completely randomly.
Pair Corralation between AP Public and Bangkok Bank
Assuming the 90 days horizon AP Public is expected to under-perform the Bangkok Bank. In addition to that, AP Public is 1.72 times more volatile than Bangkok Bank Public. It trades about -0.24 of its total potential returns per unit of risk. Bangkok Bank Public is currently generating about 0.02 per unit of volatility. If you would invest 14,900 in Bangkok Bank Public on August 25, 2024 and sell it today you would earn a total of 50.00 from holding Bangkok Bank Public or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Public vs. Bangkok Bank Public
Performance |
| Timeline |
| AP Public |
| Bangkok Bank Public |
AP Public and Bangkok Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Public and Bangkok Bank
The main advantage of trading using opposite AP Public and Bangkok Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Public 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.| AP Public vs. Siri Prime Office | AP Public vs. WHA Public | AP Public vs. Supalai Public | AP Public vs. Quality Houses Public |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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