Correlation Between Bangkok Dusit and SP Syndicate
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and SP Syndicate 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 SP Syndicate 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 SP Syndicate Public, you can compare the effects of market volatilities on Bangkok Dusit and SP Syndicate 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 SP Syndicate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and SP Syndicate.
Diversification Opportunities for Bangkok Dusit and SP Syndicate
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bangkok and SNP is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and SP Syndicate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Syndicate 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 SP Syndicate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Syndicate Public has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and SP Syndicate go up and down completely randomly.
Pair Corralation between Bangkok Dusit and SP Syndicate
If you would invest 0.00 in SP Syndicate Public on August 30, 2024 and sell it today you would earn a total of 0.00 from holding SP Syndicate Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. SP Syndicate Public
Performance |
| Timeline |
| Bangkok Dusit Medical |
| SP Syndicate Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Bangkok Dusit and SP Syndicate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and SP Syndicate
The main advantage of trading using opposite Bangkok Dusit and SP Syndicate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, SP Syndicate 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 SP Syndicate will offset losses from the drop in SP Syndicate'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 |
| SP Syndicate vs. President Bakery Public | SP Syndicate vs. MK Restaurant Group | SP Syndicate vs. Thaitheparos Public | SP Syndicate vs. Sermsuk 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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