Correlation Between Bangchak Public and Wp Energy
Can any of the company-specific risk be diversified away by investing in both Bangchak Public and Wp Energy 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 Wp Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangchak Public and Wp Energy Public, you can compare the effects of market volatilities on Bangchak Public and Wp Energy 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 Wp Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangchak Public and Wp Energy.
Diversification Opportunities for Bangchak Public and Wp Energy
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bangchak and Wp Energy is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bangchak Public and Wp Energy Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wp Energy 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 Wp Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wp Energy Public has no effect on the direction of Bangchak Public i.e., Bangchak Public and Wp Energy go up and down completely randomly.
Pair Corralation between Bangchak Public and Wp Energy
Assuming the 90 days trading horizon Bangchak Public is expected to under-perform the Wp Energy. But the stock apears to be less risky and, when comparing its historical volatility, Bangchak Public is 26.42 times less risky than Wp Energy. The stock trades about 0.0 of its potential returns per unit of risk. The Wp Energy Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 408.00 in Wp Energy Public on December 4, 2024 and sell it today you would lose (88.00) from holding Wp Energy Public or give up 21.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Bangchak Public vs. Wp Energy Public
Performance |
| Timeline |
| Bangchak Public |
| Wp Energy Public |
Bangchak Public and Wp Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangchak Public and Wp Energy
The main advantage of trading using opposite Bangchak Public and Wp Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangchak Public position performs unexpectedly, Wp Energy 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 Wp Energy will offset losses from the drop in Wp Energy'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 |
| Wp Energy vs. Workpoint Entertainment Public | Wp Energy vs. WHA Utilities and | Wp Energy vs. Wave Entertainment Public | Wp Energy vs. VGI 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |