Correlation Between Bangchak Public and Thai Oil
Can any of the company-specific risk be diversified away by investing in both Bangchak Public and Thai Oil 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 Thai Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangchak Public and Thai Oil Public, you can compare the effects of market volatilities on Bangchak Public and Thai Oil 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 Thai Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangchak Public and Thai Oil.
Diversification Opportunities for Bangchak Public and Thai Oil
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bangchak and Thai is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bangchak Public and Thai Oil Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Oil 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 Thai Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Oil Public has no effect on the direction of Bangchak Public i.e., Bangchak Public and Thai Oil go up and down completely randomly.
Pair Corralation between Bangchak Public and Thai Oil
Assuming the 90 days trading horizon Bangchak Public is expected to generate 0.65 times more return on investment than Thai Oil. However, Bangchak Public is 1.53 times less risky than Thai Oil. It trades about 0.15 of its potential returns per unit of risk. Thai Oil Public is currently generating about 0.03 per unit of risk. If you would invest 3,325 in Bangchak Public on December 11, 2024 and sell it today you would earn a total of 425.00 from holding Bangchak Public or generate 12.78% 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. Thai Oil Public
Performance |
| Timeline |
| Bangchak Public |
| Thai Oil Public |
Bangchak Public and Thai Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangchak Public and Thai Oil
The main advantage of trading using opposite Bangchak Public and Thai Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangchak Public position performs unexpectedly, Thai Oil 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 Thai Oil will offset losses from the drop in Thai Oil'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 |
| Thai Oil vs. Indara Insurance Public | Thai Oil vs. Srinanaporn Marketing Public | Thai Oil vs. Firetrade Engineering Public | Thai Oil vs. THAI LIFE INSURANCE |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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 | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |