Correlation Between Bangchak Public and Advanced Information
Can any of the company-specific risk be diversified away by investing in both Bangchak Public and Advanced Information 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 Bangchak Public and Advanced Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangchak Public and Advanced Information Technology, you can compare the effects of market volatilities on Bangchak Public and Advanced Information 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 Bangchak Public with a short position of Advanced Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangchak Public and Advanced Information.
Diversification Opportunities for Bangchak Public and Advanced Information
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bangchak and Advanced is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bangchak Public and Advanced Information Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Information and Bangchak 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 Bangchak Public are associated (or correlated) with Advanced Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Information has no effect on the direction of Bangchak Public i.e., Bangchak Public and Advanced Information go up and down completely randomly.
Pair Corralation between Bangchak Public and Advanced Information
Assuming the 90 days trading horizon Bangchak Public is expected to under-perform the Advanced Information. In addition to that, Bangchak Public is 1.11 times more volatile than Advanced Information Technology. It trades about -0.02 of its total potential returns per unit of risk. Advanced Information Technology is currently generating about 0.13 per unit of volatility. If you would invest 412.00 in Advanced Information Technology on November 3, 2024 and sell it today you would earn a total of 20.00 from holding Advanced Information Technology or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangchak Public vs. Advanced Information Technolog
Performance |
| Timeline |
| Bangchak Public |
| Advanced Information |
Bangchak Public and Advanced Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangchak Public and Advanced Information
The main advantage of trading using opposite Bangchak Public and Advanced Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangchak Public position performs unexpectedly, Advanced Information 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 Advanced Information will offset losses from the drop in Advanced Information's long position.| Bangchak Public vs. Thai Oil Public | Bangchak Public vs. PTT Public | Bangchak Public vs. PTT Global Chemical | Bangchak Public vs. IRPC Public |
| Advanced Information vs. AP Public | Advanced Information vs. Jasmine International Public | Advanced Information vs. Asia Plus Group | Advanced Information vs. Bangchak 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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