Correlation Between Bangchak Public and Jasmine International
Can any of the company-specific risk be diversified away by investing in both Bangchak Public and Jasmine International 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 Jasmine International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangchak Public and Jasmine International Public, you can compare the effects of market volatilities on Bangchak Public and Jasmine International 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 Jasmine International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangchak Public and Jasmine International.
Diversification Opportunities for Bangchak Public and Jasmine International
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangchak and Jasmine is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Bangchak Public and Jasmine International Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasmine International 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 Jasmine International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasmine International has no effect on the direction of Bangchak Public i.e., Bangchak Public and Jasmine International go up and down completely randomly.
Pair Corralation between Bangchak Public and Jasmine International
Assuming the 90 days trading horizon Bangchak Public is expected to under-perform the Jasmine International. In addition to that, Bangchak Public is 1.42 times more volatile than Jasmine International Public. It trades about -0.17 of its total potential returns per unit of risk. Jasmine International Public is currently generating about 0.01 per unit of volatility. If you would invest 232.00 in Jasmine International Public on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Jasmine International Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangchak Public vs. Jasmine International Public
Performance |
| Timeline |
| Bangchak Public |
| Jasmine International |
Bangchak Public and Jasmine International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangchak Public and Jasmine International
The main advantage of trading using opposite Bangchak Public and Jasmine International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangchak Public position performs unexpectedly, Jasmine International 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 Jasmine International will offset losses from the drop in Jasmine International'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 |
| Jasmine International vs. True Public | Jasmine International vs. Land and Houses | Jasmine International vs. Advanced Info Service | Jasmine International vs. Krung Thai Bank |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |