Correlation Between Bangkok Dusit and Salee Printing
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Salee Printing 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 Salee Printing 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 Salee Printing Public, you can compare the effects of market volatilities on Bangkok Dusit and Salee Printing 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 Salee Printing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Salee Printing.
Diversification Opportunities for Bangkok Dusit and Salee Printing
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bangkok and Salee is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Salee Printing Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Salee Printing 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 Salee Printing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Salee Printing Public has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Salee Printing go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Salee Printing
Assuming the 90 days trading horizon Bangkok Dusit is expected to generate 168.09 times less return on investment than Salee Printing. But when comparing it to its historical volatility, Bangkok Dusit Medical is 47.93 times less risky than Salee Printing. It trades about 0.02 of its potential returns per unit of risk. Salee Printing Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 40.00 in Salee Printing Public on September 4, 2024 and sell it today you would earn a total of 9.00 from holding Salee Printing Public or generate 22.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.58% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Salee Printing Public
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Salee Printing Public |
Bangkok Dusit and Salee Printing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Salee Printing
The main advantage of trading using opposite Bangkok Dusit and Salee Printing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Salee Printing 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 Salee Printing will offset losses from the drop in Salee Printing's long position.| Bangkok Dusit vs. CP ALL Public | Bangkok Dusit vs. Central Pattana Public | Bangkok Dusit vs. Airports of Thailand | Bangkok Dusit vs. Kasikornbank Public |
| Salee Printing vs. S Pack Print | Salee Printing vs. Sahamitr Pressure Container | Salee Printing vs. Srithai Superware Public | Salee Printing vs. Sahamit Machinery 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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