Correlation Between Bangkok Dusit and OHTL Public

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Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and OHTL Public 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 OHTL Public 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 OHTL Public, you can compare the effects of market volatilities on Bangkok Dusit and OHTL Public 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 OHTL Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and OHTL Public.

Diversification Opportunities for Bangkok Dusit and OHTL Public

0.24
  Correlation Coefficient

Modest diversification

The 3 months correlation between Bangkok and OHTL is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and OHTL Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OHTL 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 OHTL Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OHTL Public has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and OHTL Public go up and down completely randomly.

Pair Corralation between Bangkok Dusit and OHTL Public

Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to generate 1.34 times more return on investment than OHTL Public. However, Bangkok Dusit is 1.34 times more volatile than OHTL Public. It trades about -0.13 of its potential returns per unit of risk. OHTL Public is currently generating about -0.19 per unit of risk. If you would invest  2,650  in Bangkok Dusit Medical on September 12, 2024 and sell it today you would lose (125.00) from holding Bangkok Dusit Medical or give up 4.72% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy95.24%
ValuesDaily Returns

Bangkok Dusit Medical  vs.  OHTL Public

 Performance 
       Timeline  
Bangkok Dusit Medical 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Bangkok Dusit Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.
OHTL Public 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days OHTL Public has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's forward-looking signals remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Bangkok Dusit and OHTL Public Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Bangkok Dusit and OHTL Public

The main advantage of trading using opposite Bangkok Dusit and OHTL Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, OHTL Public 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 OHTL Public will offset losses from the drop in OHTL Public's long position.
The idea behind Bangkok Dusit Medical and OHTL Public pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.

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