Correlation Between Bualuang Office and Heng Leasing
Can any of the company-specific risk be diversified away by investing in both Bualuang Office and Heng Leasing 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 Bualuang Office and Heng Leasing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bualuang Office Leasehold and Heng Leasing Capital, you can compare the effects of market volatilities on Bualuang Office and Heng Leasing 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 Bualuang Office with a short position of Heng Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bualuang Office and Heng Leasing.
Diversification Opportunities for Bualuang Office and Heng Leasing
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bualuang and Heng is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Bualuang Office Leasehold and Heng Leasing Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heng Leasing Capital and Bualuang Office 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 Bualuang Office Leasehold are associated (or correlated) with Heng Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heng Leasing Capital has no effect on the direction of Bualuang Office i.e., Bualuang Office and Heng Leasing go up and down completely randomly.
Pair Corralation between Bualuang Office and Heng Leasing
Assuming the 90 days trading horizon Bualuang Office Leasehold is expected to under-perform the Heng Leasing. In addition to that, Bualuang Office is 9.39 times more volatile than Heng Leasing Capital. It trades about -0.22 of its total potential returns per unit of risk. Heng Leasing Capital is currently generating about 0.01 per unit of volatility. If you would invest 111.00 in Heng Leasing Capital on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Heng Leasing Capital or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bualuang Office Leasehold vs. Heng Leasing Capital
Performance |
| Timeline |
| Bualuang Office Leasehold |
| Heng Leasing Capital |
Bualuang Office and Heng Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bualuang Office and Heng Leasing
The main advantage of trading using opposite Bualuang Office and Heng Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bualuang Office position performs unexpectedly, Heng Leasing 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 Heng Leasing will offset losses from the drop in Heng Leasing's long position.| Bualuang Office vs. Hwa Fong Rubber | Bualuang Office vs. Union Plastic Public | Bualuang Office vs. Turnkey Communication Services | Bualuang Office vs. Communication System Solution |
| Heng Leasing vs. Bangkok Commercial Asset | Heng Leasing vs. Siam Global House | Heng Leasing vs. Dohome Public | Heng Leasing vs. JMT Network Services |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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