Correlation Between Bangkok Expressway and Bangkok Chain
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and Bangkok Chain 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 Expressway and Bangkok Chain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Expressway and and Bangkok Chain Hospital, you can compare the effects of market volatilities on Bangkok Expressway and Bangkok Chain 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 Expressway with a short position of Bangkok Chain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and Bangkok Chain.
Diversification Opportunities for Bangkok Expressway and Bangkok Chain
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bangkok and Bangkok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and Bangkok Chain Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Chain Hospital and Bangkok Expressway 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 Expressway and are associated (or correlated) with Bangkok Chain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Chain Hospital has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and Bangkok Chain go up and down completely randomly.
Pair Corralation between Bangkok Expressway and Bangkok Chain
Assuming the 90 days trading horizon Bangkok Expressway and is expected to under-perform the Bangkok Chain. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Expressway and is 2.14 times less risky than Bangkok Chain. The stock trades about -0.23 of its potential returns per unit of risk. The Bangkok Chain Hospital is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,773 in Bangkok Chain Hospital on September 13, 2024 and sell it today you would lose (63.00) from holding Bangkok Chain Hospital or give up 3.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Expressway and vs. Bangkok Chain Hospital
Performance |
| Timeline |
| Bangkok Expressway and |
| Bangkok Chain Hospital |
Bangkok Expressway and Bangkok Chain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and Bangkok Chain
The main advantage of trading using opposite Bangkok Expressway and Bangkok Chain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, Bangkok Chain 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 Bangkok Chain will offset losses from the drop in Bangkok Chain's long position.| Bangkok Expressway vs. CP ALL Public | Bangkok Expressway vs. Airports of Thailand | Bangkok Expressway vs. Central Pattana Public | Bangkok Expressway vs. The Erawan Group |
| Bangkok Chain vs. Bangkok Dusit Medical | Bangkok Chain vs. Bumrungrad Hospital Public | Bangkok Chain vs. Bangkok Chain Hospital | Bangkok Chain vs. Rajthanee Hospital 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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