Correlation Between Bangchak Public and Jasmine Telecom
Can any of the company-specific risk be diversified away by investing in both Bangchak Public and Jasmine Telecom 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 Telecom 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 Telecom Systems, you can compare the effects of market volatilities on Bangchak Public and Jasmine Telecom 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 Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangchak Public and Jasmine Telecom.
Diversification Opportunities for Bangchak Public and Jasmine Telecom
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bangchak and Jasmine is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Bangchak Public and Jasmine Telecom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jasmine Telecom Systems 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 Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jasmine Telecom Systems has no effect on the direction of Bangchak Public i.e., Bangchak Public and Jasmine Telecom go up and down completely randomly.
Pair Corralation between Bangchak Public and Jasmine Telecom
Assuming the 90 days trading horizon Bangchak Public is expected to generate 0.88 times more return on investment than Jasmine Telecom. However, Bangchak Public is 1.14 times less risky than Jasmine Telecom. It trades about 0.14 of its potential returns per unit of risk. Jasmine Telecom Systems is currently generating about -0.16 per unit of risk. If you would invest 2,975 in Bangchak Public on November 27, 2024 and sell it today you would earn a total of 750.00 from holding Bangchak Public or generate 25.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangchak Public vs. Jasmine Telecom Systems
Performance |
| Timeline |
| Bangchak Public |
| Jasmine Telecom Systems |
Bangchak Public and Jasmine Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangchak Public and Jasmine Telecom
The main advantage of trading using opposite Bangchak Public and Jasmine Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangchak Public position performs unexpectedly, Jasmine Telecom 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 Telecom will offset losses from the drop in Jasmine Telecom'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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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