Correlation Between Bangkok Expressway and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and Bangkok Dusit 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 Dusit 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 Dusit Medical, you can compare the effects of market volatilities on Bangkok Expressway and Bangkok Dusit 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 Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and Bangkok Dusit.
Diversification Opportunities for Bangkok Expressway and Bangkok Dusit
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bangkok and Bangkok is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and Bangkok Dusit Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Dusit Medical 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 Dusit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Dusit Medical has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and Bangkok Dusit go up and down completely randomly.
Pair Corralation between Bangkok Expressway and Bangkok Dusit
Assuming the 90 days trading horizon Bangkok Expressway and is expected to generate 0.61 times more return on investment than Bangkok Dusit. However, Bangkok Expressway and is 1.63 times less risky than Bangkok Dusit. It trades about -0.33 of its potential returns per unit of risk. Bangkok Dusit Medical is currently generating about -0.23 per unit of risk. If you would invest 790.00 in Bangkok Expressway and on August 31, 2024 and sell it today you would lose (50.00) from holding Bangkok Expressway and or give up 6.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Expressway and vs. Bangkok Dusit Medical
Performance |
| Timeline |
| Bangkok Expressway and |
| Bangkok Dusit Medical |
Bangkok Expressway and Bangkok Dusit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and Bangkok Dusit
The main advantage of trading using opposite Bangkok Expressway and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, Bangkok Dusit 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 Dusit will offset losses from the drop in Bangkok Dusit'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 |
| Bangkok Dusit vs. AP Public | Bangkok Dusit vs. Bumrungrad Hospital Public | Bangkok Dusit vs. Advanced Information Technology | Bangkok Dusit vs. AJ Plast 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |