Correlation Between Banpu Public and Interlink Communication
Can any of the company-specific risk be diversified away by investing in both Banpu Public and Interlink Communication 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 Interlink Communication into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Banpu Public and Interlink Communication Public, you can compare the effects of market volatilities on Banpu Public and Interlink Communication 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 Interlink Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Banpu Public and Interlink Communication.
Diversification Opportunities for Banpu Public and Interlink Communication
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Banpu and Interlink is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Banpu Public and Interlink Communication Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interlink Communication 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 Interlink Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interlink Communication has no effect on the direction of Banpu Public i.e., Banpu Public and Interlink Communication go up and down completely randomly.
Pair Corralation between Banpu Public and Interlink Communication
Assuming the 90 days trading horizon Banpu Public is expected to under-perform the Interlink Communication. In addition to that, Banpu Public is 1.31 times more volatile than Interlink Communication Public. It trades about -0.06 of its total potential returns per unit of risk. Interlink Communication Public is currently generating about -0.07 per unit of volatility. If you would invest 615.00 in Interlink Communication Public on August 27, 2024 and sell it today you would lose (20.00) from holding Interlink Communication Public or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Banpu Public vs. Interlink Communication Public
Performance |
| Timeline |
| Banpu Public |
| Interlink Communication |
Banpu Public and Interlink Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Banpu Public and Interlink Communication
The main advantage of trading using opposite Banpu Public and Interlink Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Banpu Public position performs unexpectedly, Interlink Communication 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 Interlink Communication will offset losses from the drop in Interlink Communication's long position.| Banpu Public vs. PTT Oil and | Banpu Public vs. Power Solution Technologies | Banpu Public vs. Star Petroleum Refining |
| Interlink Communication vs. AP Public | Interlink Communication vs. Jasmine International Public | Interlink Communication vs. Asia Plus Group | Interlink Communication vs. Bangkok Aviation Fuel |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |