Correlation Between Bangkok Dusit and CP ALL
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and CP ALL 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 CP ALL 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 CP ALL Public, you can compare the effects of market volatilities on Bangkok Dusit and CP ALL 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 CP ALL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and CP ALL.
Diversification Opportunities for Bangkok Dusit and CP ALL
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bangkok and CPALL is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and CP ALL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CP ALL 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 CP ALL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CP ALL Public has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and CP ALL go up and down completely randomly.
Pair Corralation between Bangkok Dusit and CP ALL
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to generate 97.71 times more return on investment than CP ALL. However, Bangkok Dusit is 97.71 times more volatile than CP ALL Public. It trades about 0.11 of its potential returns per unit of risk. CP ALL Public is currently generating about 0.07 per unit of risk. If you would invest 2,800 in Bangkok Dusit Medical on August 28, 2024 and sell it today you would lose (175.00) from holding Bangkok Dusit Medical or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. CP ALL Public
Performance |
| Timeline |
| Bangkok Dusit Medical |
| CP ALL Public |
Bangkok Dusit and CP ALL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and CP ALL
The main advantage of trading using opposite Bangkok Dusit and CP ALL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, CP ALL 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 CP ALL will offset losses from the drop in CP ALL'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 |
| CP ALL vs. Airports of Thailand | CP ALL vs. PTT Public | CP ALL vs. Bangkok Dusit Medical | CP ALL vs. Kasikornbank 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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