Correlation Between Bangkok Expressway and Dynasty Ceramic
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and Dynasty Ceramic 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 Dynasty Ceramic 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 Dynasty Ceramic Public, you can compare the effects of market volatilities on Bangkok Expressway and Dynasty Ceramic 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 Dynasty Ceramic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and Dynasty Ceramic.
Diversification Opportunities for Bangkok Expressway and Dynasty Ceramic
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bangkok and Dynasty is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and Dynasty Ceramic Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynasty Ceramic Public 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 Dynasty Ceramic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynasty Ceramic Public has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and Dynasty Ceramic go up and down completely randomly.
Pair Corralation between Bangkok Expressway and Dynasty Ceramic
Assuming the 90 days trading horizon Bangkok Expressway and is expected to under-perform the Dynasty Ceramic. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Expressway and is 1.34 times less risky than Dynasty Ceramic. The stock trades about -0.02 of its potential returns per unit of risk. The Dynasty Ceramic Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 149.00 in Dynasty Ceramic Public on September 3, 2024 and sell it today you would earn a total of 38.00 from holding Dynasty Ceramic Public or generate 25.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Expressway and vs. Dynasty Ceramic Public
Performance |
| Timeline |
| Bangkok Expressway and |
| Dynasty Ceramic Public |
Bangkok Expressway and Dynasty Ceramic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and Dynasty Ceramic
The main advantage of trading using opposite Bangkok Expressway and Dynasty Ceramic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, Dynasty Ceramic 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 Dynasty Ceramic will offset losses from the drop in Dynasty Ceramic'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 |
| Dynasty Ceramic vs. Asia Aviation Public | Dynasty Ceramic vs. Bangkok Dusit Medical | Dynasty Ceramic vs. Bangkok Expressway and | Dynasty Ceramic vs. Airports of Thailand |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |