Correlation Between BCPG Public and TPI Polene
Can any of the company-specific risk be diversified away by investing in both BCPG Public and TPI Polene 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 BCPG Public and TPI Polene into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BCPG Public and TPI Polene Power, you can compare the effects of market volatilities on BCPG Public and TPI Polene 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 BCPG Public with a short position of TPI Polene. Check out your portfolio center. Please also check ongoing floating volatility patterns of BCPG Public and TPI Polene.
Diversification Opportunities for BCPG Public and TPI Polene
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BCPG and TPI is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding BCPG Public and TPI Polene Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPI Polene Power and BCPG 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 BCPG Public are associated (or correlated) with TPI Polene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPI Polene Power has no effect on the direction of BCPG Public i.e., BCPG Public and TPI Polene go up and down completely randomly.
Pair Corralation between BCPG Public and TPI Polene
Assuming the 90 days trading horizon BCPG Public is expected to generate 7.2 times more return on investment than TPI Polene. However, BCPG Public is 7.2 times more volatile than TPI Polene Power. It trades about 0.23 of its potential returns per unit of risk. TPI Polene Power is currently generating about -0.06 per unit of risk. If you would invest 520.00 in BCPG Public on October 20, 2024 and sell it today you would earn a total of 100.00 from holding BCPG Public or generate 19.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BCPG Public vs. TPI Polene Power
Performance |
| Timeline |
| BCPG Public |
| TPI Polene Power |
BCPG Public and TPI Polene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BCPG Public and TPI Polene
The main advantage of trading using opposite BCPG Public and TPI Polene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BCPG Public position performs unexpectedly, TPI Polene 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 TPI Polene will offset losses from the drop in TPI Polene's long position.| BCPG Public vs. Bangchak Public | BCPG Public vs. Gulf Energy Development | BCPG Public vs. Global Power Synergy | BCPG Public vs. Bangkok Expressway and |
| TPI Polene vs. Ratch Group Public | TPI Polene vs. BCPG Public | TPI Polene vs. Gulf Energy Development | TPI Polene vs. BTS Group Holdings |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |