Correlation Between Bangkok Dusit and Syntec Construction
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Syntec Construction 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 Syntec Construction 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 Syntec Construction Public, you can compare the effects of market volatilities on Bangkok Dusit and Syntec Construction 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 Syntec Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Syntec Construction.
Diversification Opportunities for Bangkok Dusit and Syntec Construction
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bangkok and Syntec is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Syntec Construction Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Syntec Construction 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 Syntec Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Syntec Construction has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Syntec Construction go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Syntec Construction
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to under-perform the Syntec Construction. In addition to that, Bangkok Dusit is 2.12 times more volatile than Syntec Construction Public. It trades about -0.21 of its total potential returns per unit of risk. Syntec Construction Public is currently generating about -0.13 per unit of volatility. If you would invest 164.00 in Syntec Construction Public on August 29, 2024 and sell it today you would lose (4.00) from holding Syntec Construction Public or give up 2.44% 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. Syntec Construction Public
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Syntec Construction |
Bangkok Dusit and Syntec Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Syntec Construction
The main advantage of trading using opposite Bangkok Dusit and Syntec Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Syntec Construction 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 Syntec Construction will offset losses from the drop in Syntec Construction's long position.| Bangkok Dusit vs. Syntec Construction Public | Bangkok Dusit vs. Quality Construction Products | Bangkok Dusit vs. Turnkey Communication Services | Bangkok Dusit vs. CHUWIT FARM PUBLIC |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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