Correlation Between Bangkok Dusit and CHAOSUA FOODS
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and CHAOSUA FOODS 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 CHAOSUA FOODS 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 CHAOSUA FOODS INDUSTRY, you can compare the effects of market volatilities on Bangkok Dusit and CHAOSUA FOODS 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 CHAOSUA FOODS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and CHAOSUA FOODS.
Diversification Opportunities for Bangkok Dusit and CHAOSUA FOODS
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bangkok and CHAOSUA is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and CHAOSUA FOODS INDUSTRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHAOSUA FOODS INDUSTRY 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 CHAOSUA FOODS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHAOSUA FOODS INDUSTRY has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and CHAOSUA FOODS go up and down completely randomly.
Pair Corralation between Bangkok Dusit and CHAOSUA FOODS
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to generate 0.58 times more return on investment than CHAOSUA FOODS. However, Bangkok Dusit Medical is 1.74 times less risky than CHAOSUA FOODS. It trades about -0.21 of its potential returns per unit of risk. CHAOSUA FOODS INDUSTRY is currently generating about -0.43 per unit of risk. If you would invest 2,800 in Bangkok Dusit Medical on August 29, 2024 and sell it today you would lose (225.00) from holding Bangkok Dusit Medical or give up 8.04% 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. CHAOSUA FOODS INDUSTRY
Performance |
| Timeline |
| Bangkok Dusit Medical |
| CHAOSUA FOODS INDUSTRY |
Bangkok Dusit and CHAOSUA FOODS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and CHAOSUA FOODS
The main advantage of trading using opposite Bangkok Dusit and CHAOSUA FOODS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, CHAOSUA FOODS 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 CHAOSUA FOODS will offset losses from the drop in CHAOSUA FOODS'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 |
| CHAOSUA FOODS vs. Bualuang Office Leasehold | CHAOSUA FOODS vs. PMC LABEL MATERIALS | CHAOSUA FOODS vs. Exotic Food Public | CHAOSUA FOODS vs. BPS TECHNOLOGY 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |