Correlation Between Bangkok Dusit and ASIA Capital
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and ASIA Capital 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 ASIA Capital 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 ASIA Capital Group, you can compare the effects of market volatilities on Bangkok Dusit and ASIA Capital 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 ASIA Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and ASIA Capital.
Diversification Opportunities for Bangkok Dusit and ASIA Capital
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bangkok and ASIA is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and ASIA Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASIA Capital Group 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 ASIA Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASIA Capital Group has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and ASIA Capital go up and down completely randomly.
Pair Corralation between Bangkok Dusit and ASIA Capital
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to generate 0.07 times more return on investment than ASIA Capital. However, Bangkok Dusit Medical is 14.84 times less risky than ASIA Capital. It trades about -0.28 of its potential returns per unit of risk. ASIA Capital Group is currently generating about -0.22 per unit of risk. If you would invest 2,775 in Bangkok Dusit Medical on September 2, 2024 and sell it today you would lose (250.00) from holding Bangkok Dusit Medical or give up 9.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. ASIA Capital Group
Performance |
| Timeline |
| Bangkok Dusit Medical |
| ASIA Capital Group |
Bangkok Dusit and ASIA Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and ASIA Capital
The main advantage of trading using opposite Bangkok Dusit and ASIA Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, ASIA Capital 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 ASIA Capital will offset losses from the drop in ASIA Capital's long position.| Bangkok Dusit vs. AP Public | Bangkok Dusit vs. Advanced Information Technology | Bangkok Dusit vs. AJ Plast Public | Bangkok Dusit vs. Berli Jucker Public |
| ASIA Capital vs. East Coast Furnitech | ASIA Capital vs. Filter Vision Public | ASIA Capital vs. Cho Thavee Public | ASIA Capital vs. Akkhie Prakarn 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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