Correlation Between Bualuang Office and Somboon Advance
Can any of the company-specific risk be diversified away by investing in both Bualuang Office and Somboon Advance 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 Somboon Advance 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 Somboon Advance Technology, you can compare the effects of market volatilities on Bualuang Office and Somboon Advance 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 Somboon Advance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bualuang Office and Somboon Advance.
Diversification Opportunities for Bualuang Office and Somboon Advance
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bualuang and Somboon is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bualuang Office Leasehold and Somboon Advance Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Somboon Advance Tech 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 Somboon Advance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Somboon Advance Tech has no effect on the direction of Bualuang Office i.e., Bualuang Office and Somboon Advance go up and down completely randomly.
Pair Corralation between Bualuang Office and Somboon Advance
Assuming the 90 days trading horizon Bualuang Office Leasehold is expected to under-perform the Somboon Advance. In addition to that, Bualuang Office is 7.15 times more volatile than Somboon Advance Technology. It trades about -0.23 of its total potential returns per unit of risk. Somboon Advance Technology is currently generating about 0.17 per unit of volatility. If you would invest 1,080 in Somboon Advance Technology on November 28, 2024 and sell it today you would earn a total of 110.00 from holding Somboon Advance Technology or generate 10.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bualuang Office Leasehold vs. Somboon Advance Technology
Performance |
| Timeline |
| Bualuang Office Leasehold |
| Somboon Advance Tech |
Bualuang Office and Somboon Advance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bualuang Office and Somboon Advance
The main advantage of trading using opposite Bualuang Office and Somboon Advance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bualuang Office position performs unexpectedly, Somboon Advance 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 Somboon Advance will offset losses from the drop in Somboon Advance's long position.| Bualuang Office vs. Digital Telecommunications Infrastructure | Bualuang Office vs. Prime Office Leasehold | Bualuang Office vs. CPN Retail Growth | Bualuang Office vs. Dynasty Ceramic Public |
| Somboon Advance vs. AAPICO Hitech Public | Somboon Advance vs. Thai Stanley Electric | Somboon Advance vs. Hana Microelectronics Public | Somboon Advance vs. TISCO Financial Group |
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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