Correlation Between Bangchak Public and Susco Public
Can any of the company-specific risk be diversified away by investing in both Bangchak Public and Susco Public 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 Susco Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangchak Public and Susco Public, you can compare the effects of market volatilities on Bangchak Public and Susco Public 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 Susco Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangchak Public and Susco Public.
Diversification Opportunities for Bangchak Public and Susco Public
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bangchak and Susco is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Bangchak Public and Susco Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Susco 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 Susco Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Susco Public has no effect on the direction of Bangchak Public i.e., Bangchak Public and Susco Public go up and down completely randomly.
Pair Corralation between Bangchak Public and Susco Public
Assuming the 90 days trading horizon Bangchak Public is expected to generate 1.02 times more return on investment than Susco Public. However, Bangchak Public is 1.02 times more volatile than Susco Public. It trades about 0.01 of its potential returns per unit of risk. Susco Public is currently generating about -0.01 per unit of risk. If you would invest 2,818 in Bangchak Public on September 14, 2024 and sell it today you would earn a total of 132.00 from holding Bangchak Public or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bangchak Public vs. Susco Public
Performance |
| Timeline |
| Bangchak Public |
| Susco Public |
Bangchak Public and Susco Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangchak Public and Susco Public
The main advantage of trading using opposite Bangchak Public and Susco Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangchak Public position performs unexpectedly, Susco Public 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 Susco Public will offset losses from the drop in Susco Public'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 |
| Susco Public vs. Lanna Resources Public | Susco Public vs. Thai Oil Public | Susco Public vs. Star Petroleum Refining | Susco Public vs. Ratch Group Public |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |