Correlation Between Bangkok Dusit and Thai Rung
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Thai Rung 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 Thai Rung 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 Thai Rung Union, you can compare the effects of market volatilities on Bangkok Dusit and Thai Rung 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 Thai Rung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Thai Rung.
Diversification Opportunities for Bangkok Dusit and Thai Rung
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bangkok and Thai is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Thai Rung Union in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Rung Union 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 Thai Rung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Rung Union has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Thai Rung go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Thai Rung
Assuming the 90 days trading horizon Bangkok Dusit is expected to generate 11323.67 times less return on investment than Thai Rung. But when comparing it to its historical volatility, Bangkok Dusit Medical is 45.1 times less risky than Thai Rung. It trades about 0.0 of its potential returns per unit of risk. Thai Rung Union is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 337.00 in Thai Rung Union on September 1, 2024 and sell it today you would lose (19.00) from holding Thai Rung Union or give up 5.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Thai Rung Union
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Thai Rung Union |
Bangkok Dusit and Thai Rung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Thai Rung
The main advantage of trading using opposite Bangkok Dusit and Thai Rung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Thai Rung 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 Thai Rung will offset losses from the drop in Thai Rung'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 |
| Thai Rung vs. TRC Construction Public | Thai Rung vs. Bangkok Expressway and | Thai Rung vs. Lohakit Metal Public | Thai Rung vs. Gunkul Engineering 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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