Correlation Between AP Public and Bangkok Land
Can any of the company-specific risk be diversified away by investing in both AP Public and Bangkok Land 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 Land 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 Land Public, you can compare the effects of market volatilities on AP Public and Bangkok Land 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 Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of AP Public and Bangkok Land.
Diversification Opportunities for AP Public and Bangkok Land
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between AP Public and Bangkok is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding AP Public and Bangkok Land Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Land 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 Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Land Public has no effect on the direction of AP Public i.e., AP Public and Bangkok Land go up and down completely randomly.
Pair Corralation between AP Public and Bangkok Land
Assuming the 90 days horizon AP Public is expected to under-perform the Bangkok Land. But the stock apears to be less risky and, when comparing its historical volatility, AP Public is 28.4 times less risky than Bangkok Land. The stock trades about -0.01 of its potential returns per unit of risk. The Bangkok Land Public is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 102.00 in Bangkok Land Public on September 12, 2024 and sell it today you would lose (41.00) from holding Bangkok Land Public or give up 40.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
AP Public vs. Bangkok Land Public
Performance |
| Timeline |
| AP Public |
| Bangkok Land Public |
AP Public and Bangkok Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AP Public and Bangkok Land
The main advantage of trading using opposite AP Public and Bangkok Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AP Public position performs unexpectedly, Bangkok Land 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 Land will offset losses from the drop in Bangkok Land'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 |
| Bangkok Land vs. Siri Prime Office | Bangkok Land vs. BTS Group Holdings | Bangkok Land vs. Quality Houses Public | Bangkok Land vs. Land and Houses |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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