Correlation Between Banpu Public and Amata Public
Can any of the company-specific risk be diversified away by investing in both Banpu Public and Amata 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 Banpu Public and Amata Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banpu Public and Amata Public, you can compare the effects of market volatilities on Banpu Public and Amata 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 Banpu Public with a short position of Amata Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banpu Public and Amata Public.
Diversification Opportunities for Banpu Public and Amata Public
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Banpu and Amata is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Banpu Public and Amata Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amata Public and Banpu 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 Banpu Public are associated (or correlated) with Amata Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amata Public has no effect on the direction of Banpu Public i.e., Banpu Public and Amata Public go up and down completely randomly.
Pair Corralation between Banpu Public and Amata Public
Assuming the 90 days trading horizon Banpu Public is expected to under-perform the Amata Public. In addition to that, Banpu Public is 1.06 times more volatile than Amata Public. It trades about -0.11 of its total potential returns per unit of risk. Amata Public is currently generating about 0.01 per unit of volatility. If you would invest 2,925 in Amata Public on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Amata Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banpu Public vs. Amata Public
Performance |
| Timeline |
| Banpu Public |
| Amata Public |
Banpu Public and Amata Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banpu Public and Amata Public
The main advantage of trading using opposite Banpu Public and Amata Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banpu Public position performs unexpectedly, Amata 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 Amata Public will offset losses from the drop in Amata Public's long position.| Banpu Public vs. PTT Public | Banpu Public vs. PTT Exploration and | Banpu Public vs. Bangkok Bank Public | Banpu Public vs. Thai Oil 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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