Correlation Between Bangkok Expressway and General Environmental
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and General Environmental 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 General Environmental 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 General Environmental Conservation, you can compare the effects of market volatilities on Bangkok Expressway and General Environmental 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 General Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and General Environmental.
Diversification Opportunities for Bangkok Expressway and General Environmental
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bangkok and General is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and General Environmental Conserva in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Environmental 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 General Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Environmental has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and General Environmental go up and down completely randomly.
Pair Corralation between Bangkok Expressway and General Environmental
Assuming the 90 days trading horizon Bangkok Expressway and is expected to under-perform the General Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Expressway and is 48.77 times less risky than General Environmental. The stock trades about -0.01 of its potential returns per unit of risk. The General Environmental Conservation is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 51.00 in General Environmental Conservation on September 5, 2024 and sell it today you would lose (3.00) from holding General Environmental Conservation or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Bangkok Expressway and vs. General Environmental Conserva
Performance |
| Timeline |
| Bangkok Expressway and |
| General Environmental |
Bangkok Expressway and General Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and General Environmental
The main advantage of trading using opposite Bangkok Expressway and General Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, General Environmental 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 General Environmental will offset losses from the drop in General Environmental'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 |
| General Environmental vs. Asia Aviation Public | General Environmental vs. Bangkok Dusit Medical | General Environmental vs. Bangkok Expressway and | General Environmental 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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