Correlation Between AP Public and Bangkok Expressway
Can any of the company-specific risk be diversified away by investing in both AP Public and Bangkok Expressway 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 Expressway 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 Expressway and, you can compare the effects of market volatilities on AP Public and Bangkok Expressway 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 Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Public and Bangkok Expressway.
Diversification Opportunities for AP Public and Bangkok Expressway
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AP Public and Bangkok is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding AP Public and Bangkok Expressway and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Expressway and 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 Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Expressway and has no effect on the direction of AP Public i.e., AP Public and Bangkok Expressway go up and down completely randomly.
Pair Corralation between AP Public and Bangkok Expressway
Assuming the 90 days horizon AP Public is expected to under-perform the Bangkok Expressway. In addition to that, AP Public is 1.21 times more volatile than Bangkok Expressway and. It trades about -0.03 of its total potential returns per unit of risk. Bangkok Expressway and is currently generating about -0.02 per unit of volatility. If you would invest 826.00 in Bangkok Expressway and on August 31, 2024 and sell it today you would lose (96.00) from holding Bangkok Expressway and or give up 11.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Public vs. Bangkok Expressway and
Performance |
| Timeline |
| AP Public |
| Bangkok Expressway and |
AP Public and Bangkok Expressway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Public and Bangkok Expressway
The main advantage of trading using opposite AP Public and Bangkok Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Public position performs unexpectedly, Bangkok Expressway 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 Expressway will offset losses from the drop in Bangkok Expressway's long position.| AP Public vs. Land and Houses | AP Public vs. Bangkok Bank Public | AP Public vs. Siri Prime Office | AP Public vs. Charoen Pokphand Foods |
| Bangkok Expressway vs. BTS Group Holdings | Bangkok Expressway vs. Bangkok Dusit Medical | Bangkok Expressway vs. Airports of Thailand | Bangkok Expressway vs. CP ALL 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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