Correlation Between Bangchak Public and Asset World
Can any of the company-specific risk be diversified away by investing in both Bangchak Public and Asset World 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 Asset World into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangchak Public and Asset World Corp, you can compare the effects of market volatilities on Bangchak Public and Asset World 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 Asset World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangchak Public and Asset World.
Diversification Opportunities for Bangchak Public and Asset World
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bangchak and Asset is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bangchak Public and Asset World Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asset World Corp 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 Asset World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asset World Corp has no effect on the direction of Bangchak Public i.e., Bangchak Public and Asset World go up and down completely randomly.
Pair Corralation between Bangchak Public and Asset World
Assuming the 90 days trading horizon Bangchak Public is expected to generate 1.41 times more return on investment than Asset World. However, Bangchak Public is 1.41 times more volatile than Asset World Corp. It trades about 0.13 of its potential returns per unit of risk. Asset World Corp is currently generating about 0.03 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. Asset World Corp
Performance |
| Timeline |
| Bangchak Public |
| Asset World Corp |
Bangchak Public and Asset World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangchak Public and Asset World
The main advantage of trading using opposite Bangchak Public and Asset World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangchak Public position performs unexpectedly, Asset World 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 Asset World will offset losses from the drop in Asset World'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 |
| Asset World vs. Central Retail | Asset World vs. Gulf Energy Development | Asset World vs. BTS Group Holdings | Asset World vs. Bangkok Expressway and |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |