Correlation Between Bangkok Dusit and Universal Electronics
Can any of the company-specific risk be diversified away by investing in both Bangkok Dusit and Universal Electronics 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 Universal Electronics 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 Universal Electronics, you can compare the effects of market volatilities on Bangkok Dusit and Universal Electronics 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 Universal Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Dusit and Universal Electronics.
Diversification Opportunities for Bangkok Dusit and Universal Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bangkok and Universal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Dusit Medical and Universal Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Electronics 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 Universal Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Electronics has no effect on the direction of Bangkok Dusit i.e., Bangkok Dusit and Universal Electronics go up and down completely randomly.
Pair Corralation between Bangkok Dusit and Universal Electronics
If you would invest 814.00 in Universal Electronics on November 2, 2024 and sell it today you would earn a total of 205.00 from holding Universal Electronics or generate 25.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bangkok Dusit Medical vs. Universal Electronics
Performance |
| Timeline |
| Bangkok Dusit Medical |
| Universal Electronics |
Bangkok Dusit and Universal Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Dusit and Universal Electronics
The main advantage of trading using opposite Bangkok Dusit and Universal Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Dusit position performs unexpectedly, Universal Electronics 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 Universal Electronics will offset losses from the drop in Universal Electronics' long position.| Bangkok Dusit vs. Western Digital | Bangkok Dusit vs. Zhihu Inc ADR | Bangkok Dusit vs. Kellanova | Bangkok Dusit vs. Asure Software |
| Universal Electronics vs. LG Display Co | Universal Electronics vs. Zepp Health Corp | Universal Electronics vs. Sonos Inc | Universal Electronics vs. VOXX International |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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