Correlation Between BEC World and Workpoint Entertainment
Can any of the company-specific risk be diversified away by investing in both BEC World and Workpoint Entertainment 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 BEC World and Workpoint Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BEC World Public and Workpoint Entertainment Public, you can compare the effects of market volatilities on BEC World and Workpoint Entertainment 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 BEC World with a short position of Workpoint Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of BEC World and Workpoint Entertainment.
Diversification Opportunities for BEC World and Workpoint Entertainment
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BEC and Workpoint is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding BEC World Public and Workpoint Entertainment Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workpoint Entertainment and BEC World 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 BEC World Public are associated (or correlated) with Workpoint Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workpoint Entertainment has no effect on the direction of BEC World i.e., BEC World and Workpoint Entertainment go up and down completely randomly.
Pair Corralation between BEC World and Workpoint Entertainment
Assuming the 90 days trading horizon BEC World Public is expected to generate 1.0 times more return on investment than Workpoint Entertainment. However, BEC World is 1.0 times more volatile than Workpoint Entertainment Public. It trades about 0.04 of its potential returns per unit of risk. Workpoint Entertainment Public is currently generating about 0.04 per unit of risk. If you would invest 732.00 in BEC World Public on January 18, 2025 and sell it today you would lose (346.00) from holding BEC World Public or give up 47.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BEC World Public vs. Workpoint Entertainment Public
Performance |
| Timeline |
| BEC World Public |
| Workpoint Entertainment |
BEC World and Workpoint Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BEC World and Workpoint Entertainment
The main advantage of trading using opposite BEC World and Workpoint Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BEC World position performs unexpectedly, Workpoint Entertainment 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 Workpoint Entertainment will offset losses from the drop in Workpoint Entertainment's long position.| BEC World vs. Land and Houses | BEC World vs. AP Public | BEC World vs. Bangkok Bank PCL | BEC World vs. Charoen Pokphand Foods |
| Workpoint Entertainment vs. SVI Public | Workpoint Entertainment vs. Interlink Communication Public | Workpoint Entertainment vs. Thai Metal Drum | Workpoint Entertainment vs. Heng Leasing Capital |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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