Correlation Between Bangkok Expressway and Global Power
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and Global Power 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 Global Power 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 Global Power Synergy, you can compare the effects of market volatilities on Bangkok Expressway and Global Power 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 Global Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and Global Power.
Diversification Opportunities for Bangkok Expressway and Global Power
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangkok and Global is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and Global Power Synergy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Power Synergy 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 Global Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Power Synergy has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and Global Power go up and down completely randomly.
Pair Corralation between Bangkok Expressway and Global Power
Assuming the 90 days trading horizon Bangkok Expressway and is expected to generate 0.64 times more return on investment than Global Power. However, Bangkok Expressway and is 1.55 times less risky than Global Power. It trades about -0.02 of its potential returns per unit of risk. Global Power Synergy is currently generating about -0.04 per unit of risk. If you would invest 893.00 in Bangkok Expressway and on August 25, 2024 and sell it today you would lose (128.00) from holding Bangkok Expressway and or give up 14.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bangkok Expressway and vs. Global Power Synergy
Performance |
| Timeline |
| Bangkok Expressway and |
| Global Power Synergy |
Bangkok Expressway and Global Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and Global Power
The main advantage of trading using opposite Bangkok Expressway and Global Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, Global Power 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 Global Power will offset losses from the drop in Global Power'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 |
| Global Power vs. Gulf Energy Development | Global Power vs. Energy Absolute Public | Global Power vs. BGrimm Power Public | Global Power vs. CP ALL 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |