Correlation Between AP Public and Bangchak Public
Can any of the company-specific risk be diversified away by investing in both AP Public and Bangchak Public 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 Bangchak Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AP Public and Bangchak Public, you can compare the effects of market volatilities on AP Public and Bangchak Public 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 Bangchak Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Public and Bangchak Public.
Diversification Opportunities for AP Public and Bangchak Public
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AP Public and Bangchak is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding AP Public and Bangchak Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangchak 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 Bangchak Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangchak Public has no effect on the direction of AP Public i.e., AP Public and Bangchak Public go up and down completely randomly.
Pair Corralation between AP Public and Bangchak Public
Assuming the 90 days horizon AP Public is expected to generate 1.19 times more return on investment than Bangchak Public. However, AP Public is 1.19 times more volatile than Bangchak Public. It trades about 0.23 of its potential returns per unit of risk. Bangchak Public is currently generating about 0.13 per unit of risk. If you would invest 780.00 in AP Public on November 28, 2024 and sell it today you would earn a total of 110.00 from holding AP Public or generate 14.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Public vs. Bangchak Public
Performance |
| Timeline |
| AP Public |
| Bangchak Public |
AP Public and Bangchak Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Public and Bangchak Public
The main advantage of trading using opposite AP Public and Bangchak Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Public position performs unexpectedly, Bangchak Public 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 Bangchak Public will offset losses from the drop in Bangchak Public's long position.| AP Public vs. Land and Houses | AP Public vs. Quality Houses Public | AP Public vs. Bangkok Bank Public | AP Public vs. Siri Prime Office |
| Bangchak Public vs. Thai Oil Public | Bangchak Public vs. PTT Public | Bangchak Public vs. PTT Global Chemical | Bangchak Public vs. IRPC 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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