Correlation Between Bangkok Dusit and Bangkok Expressway
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Bangkok Expressway 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 Bangkok Expressway 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 Bangkok Expressway and, you can compare the effects of market volatilities on Bangkok Dusit and Bangkok Expressway 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 Bangkok Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Bangkok Expressway.
Diversification Opportunities for Bangkok Dusit and Bangkok Expressway
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bangkok and Bangkok is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Bangkok Expressway and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Expressway and 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 Bangkok Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Expressway and has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Bangkok Expressway go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Bangkok Expressway
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to generate 1.05 times more return on investment than Bangkok Expressway. However, Bangkok Dusit is 1.05 times more volatile than Bangkok Expressway and. It trades about 0.0 of its potential returns per unit of risk. Bangkok Expressway and is currently generating about -0.01 per unit of risk. If you would invest 2,673 in Bangkok Dusit Medical on August 28, 2024 and sell it today you would lose (48.00) from holding Bangkok Dusit Medical or give up 1.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Bangkok Expressway and
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Bangkok Expressway and |
Bangkok Dusit and Bangkok Expressway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Bangkok Expressway
The main advantage of trading using opposite Bangkok Dusit and Bangkok Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Bangkok Expressway 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 Bangkok Expressway will offset losses from the drop in Bangkok Expressway's long position.| Bangkok Dusit vs. Bumrungrad Hospital Public | Bangkok Dusit vs. Bangkok Chain Hospital | Bangkok Dusit vs. Ramkhamhaeng Hospital Public | Bangkok Dusit vs. Vibhavadi Medical Center |
| Bangkok Expressway vs. Tata Steel Public | Bangkok Expressway vs. Thaifoods Group Public | Bangkok Expressway vs. TMT Steel Public | Bangkok Expressway vs. The Erawan Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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