Correlation Between Bangkok Dusit and Shangri La
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Shangri La 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 Shangri La 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 Shangri La Hotel Public, you can compare the effects of market volatilities on Bangkok Dusit and Shangri La 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 Shangri La. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Shangri La.
Diversification Opportunities for Bangkok Dusit and Shangri La
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bangkok and Shangri is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Shangri La Hotel Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shangri La Hotel 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 Shangri La. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shangri La Hotel has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Shangri La go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Shangri La
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to under-perform the Shangri La. In addition to that, Bangkok Dusit is 1.52 times more volatile than Shangri La Hotel Public. It trades about -0.26 of its total potential returns per unit of risk. Shangri La Hotel Public is currently generating about -0.15 per unit of volatility. If you would invest 5,050 in Shangri La Hotel Public on September 3, 2024 and sell it today you would lose (150.00) from holding Shangri La Hotel Public or give up 2.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Shangri La Hotel Public
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Shangri La Hotel |
Bangkok Dusit and Shangri La Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Shangri La
The main advantage of trading using opposite Bangkok Dusit and Shangri La positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Shangri La 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 Shangri La will offset losses from the drop in Shangri La'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 |
| Shangri La vs. Central Pattana Public | Shangri La vs. CP ALL Public | Shangri La vs. Bangkok Dusit Medical | Shangri La vs. Airports of Thailand |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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