Correlation Between Bangchak Public and Ananda Development
Can any of the company-specific risk be diversified away by investing in both Bangchak Public and Ananda Development 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 Ananda Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangchak Public and Ananda Development Public, you can compare the effects of market volatilities on Bangchak Public and Ananda Development 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 Ananda Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangchak Public and Ananda Development.
Diversification Opportunities for Bangchak Public and Ananda Development
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bangchak and Ananda is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bangchak Public and Ananda Development Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ananda Development Public 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 Ananda Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ananda Development Public has no effect on the direction of Bangchak Public i.e., Bangchak Public and Ananda Development go up and down completely randomly.
Pair Corralation between Bangchak Public and Ananda Development
Assuming the 90 days trading horizon Bangchak Public is expected to generate 0.6 times more return on investment than Ananda Development. However, Bangchak Public is 1.65 times less risky than Ananda Development. It trades about 0.13 of its potential returns per unit of risk. Ananda Development Public is currently generating about -0.22 per unit of risk. If you would invest 3,550 in Bangchak Public on November 28, 2024 and sell it today you would earn a total of 225.00 from holding Bangchak Public or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bangchak Public vs. Ananda Development Public
Performance |
| Timeline |
| Bangchak Public |
| Ananda Development Public |
Bangchak Public and Ananda Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangchak Public and Ananda Development
The main advantage of trading using opposite Bangchak Public and Ananda Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangchak Public position performs unexpectedly, Ananda Development 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 Ananda Development will offset losses from the drop in Ananda Development'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 |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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