Correlation Between Banpu Public and Bangkok Chain
Can any of the company-specific risk be diversified away by investing in both Banpu Public and Bangkok Chain 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 Bangkok Chain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banpu Public and Bangkok Chain Hospital, you can compare the effects of market volatilities on Banpu Public and Bangkok Chain 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 Bangkok Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banpu Public and Bangkok Chain.
Diversification Opportunities for Banpu Public and Bangkok Chain
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Banpu and Bangkok is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Banpu Public and Bangkok Chain Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Chain Hospital 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 Bangkok Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Chain Hospital has no effect on the direction of Banpu Public i.e., Banpu Public and Bangkok Chain go up and down completely randomly.
Pair Corralation between Banpu Public and Bangkok Chain
Assuming the 90 days trading horizon Banpu Public is expected to under-perform the Bangkok Chain. In addition to that, Banpu Public is 1.29 times more volatile than Bangkok Chain Hospital. It trades about -0.06 of its total potential returns per unit of risk. Bangkok Chain Hospital is currently generating about -0.01 per unit of volatility. If you would invest 1,844 in Bangkok Chain Hospital on November 27, 2024 and sell it today you would lose (294.00) from holding Bangkok Chain Hospital or give up 15.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banpu Public vs. Bangkok Chain Hospital
Performance |
| Timeline |
| Banpu Public |
| Bangkok Chain Hospital |
Banpu Public and Bangkok Chain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banpu Public and Bangkok Chain
The main advantage of trading using opposite Banpu Public and Bangkok Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banpu Public position performs unexpectedly, Bangkok Chain 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 Chain will offset losses from the drop in Bangkok Chain'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 |
| Bangkok Chain vs. Bangkok Dusit Medical | Bangkok Chain vs. Chularat Hospital Public | Bangkok Chain vs. Bumrungrad Hospital PCL | Bangkok Chain vs. Advanced Info Service |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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