Correlation Between Bangchak Public and Lalin Property
Can any of the company-specific risk be diversified away by investing in both Bangchak Public and Lalin Property 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 Lalin Property into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangchak Public and Lalin Property Public, you can compare the effects of market volatilities on Bangchak Public and Lalin Property 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 Lalin Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangchak Public and Lalin Property.
Diversification Opportunities for Bangchak Public and Lalin Property
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bangchak and Lalin is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Bangchak Public and Lalin Property Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lalin Property 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 Lalin Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lalin Property Public has no effect on the direction of Bangchak Public i.e., Bangchak Public and Lalin Property go up and down completely randomly.
Pair Corralation between Bangchak Public and Lalin Property
Assuming the 90 days trading horizon Bangchak Public is expected to generate 2.24 times more return on investment than Lalin Property. However, Bangchak Public is 2.24 times more volatile than Lalin Property Public. It trades about -0.03 of its potential returns per unit of risk. Lalin Property Public is currently generating about -0.14 per unit of risk. If you would invest 3,750 in Bangchak Public on January 18, 2025 and sell it today you would lose (100.00) from holding Bangchak Public or give up 2.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangchak Public vs. Lalin Property Public
Performance |
| Timeline |
| Bangchak Public |
| Lalin Property Public |
Bangchak Public and Lalin Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangchak Public and Lalin Property
The main advantage of trading using opposite Bangchak Public and Lalin Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangchak Public position performs unexpectedly, Lalin Property 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 Lalin Property will offset losses from the drop in Lalin Property's long position.| Bangchak Public vs. IRPC Public | Bangchak Public vs. PTT Exploration and | Bangchak Public vs. Star Petroleum Refining | Bangchak Public vs. PTG Energy PCL |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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