Correlation Between Bangkok Chain and Asia Green
Can any of the company-specific risk be diversified away by investing in both Bangkok Chain and Asia Green 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 Bangkok Chain and Asia Green into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Chain Hospital and Asia Green Energy, you can compare the effects of market volatilities on Bangkok Chain and Asia Green 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 Bangkok Chain with a short position of Asia Green. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Chain and Asia Green.
Diversification Opportunities for Bangkok Chain and Asia Green
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bangkok and Asia is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Chain Hospital and Asia Green Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Green Energy and Bangkok Chain 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 Bangkok Chain Hospital are associated (or correlated) with Asia Green. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Green Energy has no effect on the direction of Bangkok Chain i.e., Bangkok Chain and Asia Green go up and down completely randomly.
Pair Corralation between Bangkok Chain and Asia Green
Assuming the 90 days trading horizon Bangkok Chain Hospital is expected to under-perform the Asia Green. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Chain Hospital is 40.65 times less risky than Asia Green. The stock trades about -0.03 of its potential returns per unit of risk. The Asia Green Energy is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 181.00 in Asia Green Energy on September 1, 2024 and sell it today you would lose (58.00) from holding Asia Green Energy or give up 32.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Chain Hospital vs. Asia Green Energy
Performance |
| Timeline |
| Bangkok Chain Hospital |
| Asia Green Energy |
Bangkok Chain and Asia Green Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Chain and Asia Green
The main advantage of trading using opposite Bangkok Chain and Asia Green positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Chain position performs unexpectedly, Asia Green 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 Asia Green will offset losses from the drop in Asia Green's long position.| Bangkok Chain vs. Bangkok Dusit Medical | Bangkok Chain vs. Chularat Hospital Public | Bangkok Chain vs. Bumrungrad Hospital Public | Bangkok Chain vs. Advanced Info Service |
| Asia Green vs. Unimit Engineering Public | Asia Green vs. Union Petrochemical Public | Asia Green vs. Winner Group Enterprise | Asia Green vs. Ubis 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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