Correlation Between Bangkok Expressway and 3BB INTERNET
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and 3BB INTERNET 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 3BB INTERNET 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 3BB INTERNET INFRASTRUCTURE, you can compare the effects of market volatilities on Bangkok Expressway and 3BB INTERNET 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 3BB INTERNET. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and 3BB INTERNET.
Diversification Opportunities for Bangkok Expressway and 3BB INTERNET
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangkok and 3BB is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and 3BB INTERNET INFRASTRUCTURE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 3BB INTERNET INFRAST 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 3BB INTERNET. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 3BB INTERNET INFRAST has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and 3BB INTERNET go up and down completely randomly.
Pair Corralation between Bangkok Expressway and 3BB INTERNET
Assuming the 90 days trading horizon Bangkok Expressway and is expected to under-perform the 3BB INTERNET. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Expressway and is 1.27 times less risky than 3BB INTERNET. The stock trades about -0.49 of its potential returns per unit of risk. The 3BB INTERNET INFRASTRUCTURE is currently generating about -0.31 of returns per unit of risk over similar time horizon. If you would invest 609.00 in 3BB INTERNET INFRASTRUCTURE on September 2, 2024 and sell it today you would lose (44.00) from holding 3BB INTERNET INFRASTRUCTURE or give up 7.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Expressway and vs. 3BB INTERNET INFRASTRUCTURE
Performance |
| Timeline |
| Bangkok Expressway and |
| 3BB INTERNET INFRAST |
Bangkok Expressway and 3BB INTERNET Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and 3BB INTERNET
The main advantage of trading using opposite Bangkok Expressway and 3BB INTERNET positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, 3BB INTERNET 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 3BB INTERNET will offset losses from the drop in 3BB INTERNET's long position.| Bangkok Expressway vs. BTS Group Holdings | Bangkok Expressway vs. Bangkok Dusit Medical | Bangkok Expressway vs. Airports of Thailand | Bangkok Expressway vs. CP ALL Public |
| 3BB INTERNET vs. Interlink Communication Public | 3BB INTERNET vs. Ally Leasehold Real | 3BB INTERNET vs. Micro Leasing Public | 3BB INTERNET vs. Charoen Pokphand Foods |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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