Correlation Between Bangkok Dusit and VGI Public
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and VGI 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 VGI 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 VGI Public, you can compare the effects of market volatilities on Bangkok Dusit and VGI 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 VGI Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and VGI Public.
Diversification Opportunities for Bangkok Dusit and VGI Public
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bangkok and VGI is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and VGI Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VGI 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 VGI Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VGI Public has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and VGI Public go up and down completely randomly.
Pair Corralation between Bangkok Dusit and VGI Public
Assuming the 90 days trading horizon Bangkok Dusit Medical is expected to under-perform the VGI Public. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Dusit Medical is 2.8 times less risky than VGI Public. The stock trades about -0.22 of its potential returns per unit of risk. The VGI Public is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 270.00 in VGI Public on August 26, 2024 and sell it today you would lose (6.00) from holding VGI Public or give up 2.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. VGI Public
Performance |
| Timeline |
| Bangkok Dusit Medical |
| VGI Public |
Bangkok Dusit and VGI Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and VGI Public
The main advantage of trading using opposite Bangkok Dusit and VGI Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, VGI 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 VGI Public will offset losses from the drop in VGI Public'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 |
| VGI Public vs. BTS Group Holdings | VGI Public vs. WHA Public | VGI Public vs. Plan B Media | VGI Public vs. Gulf Energy Development |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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