Correlation Between Bangkok Dusit and BGrimm Power
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and BGrimm Power 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 Bangkok Dusit and BGrimm Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Dusit Medical and BGrimm Power Public, you can compare the effects of market volatilities on Bangkok Dusit and BGrimm Power 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 Bangkok Dusit with a short position of BGrimm Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and BGrimm Power.
Diversification Opportunities for Bangkok Dusit and BGrimm Power
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bangkok and BGrimm is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and BGrimm Power Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGrimm Power Public and Bangkok Dusit 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 Bangkok Dusit Medical are associated (or correlated) with BGrimm Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGrimm Power Public has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and BGrimm Power go up and down completely randomly.
Pair Corralation between Bangkok Dusit and BGrimm Power
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to generate 42.43 times more return on investment than BGrimm Power. However, Bangkok Dusit is 42.43 times more volatile than BGrimm Power Public. It trades about 0.08 of its potential returns per unit of risk. BGrimm Power Public is currently generating about -0.03 per unit of risk. If you would invest 2,800 in Bangkok Dusit Medical on September 14, 2024 and sell it today you would lose (310.00) from holding Bangkok Dusit Medical or give up 11.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. BGrimm Power Public
Performance |
| Timeline |
| Bangkok Dusit Medical |
| BGrimm Power Public |
Bangkok Dusit and BGrimm Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and BGrimm Power
The main advantage of trading using opposite Bangkok Dusit and BGrimm Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, BGrimm Power 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 BGrimm Power will offset losses from the drop in BGrimm Power's long position.| Bangkok Dusit vs. Bangkok Dusit Medical | Bangkok Dusit vs. Bumrungrad Hospital Public | Bangkok Dusit vs. Bangkok Chain Hospital | Bangkok Dusit vs. Rajthanee Hospital Public |
| BGrimm Power vs. WHA Public | BGrimm Power vs. Global Power Synergy | BGrimm Power vs. TPI Polene Power | BGrimm Power vs. Bangkok Expressway and |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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