Correlation Between Bangkok Expressway and Halcyon Technology
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and Halcyon Technology 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 Halcyon Technology 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 Halcyon Technology Public, you can compare the effects of market volatilities on Bangkok Expressway and Halcyon Technology 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 Halcyon Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and Halcyon Technology.
Diversification Opportunities for Bangkok Expressway and Halcyon Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bangkok and Halcyon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and Halcyon Technology Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halcyon Technology 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 Halcyon Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halcyon Technology Public has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and Halcyon Technology go up and down completely randomly.
Pair Corralation between Bangkok Expressway and Halcyon Technology
Assuming the 90 days trading horizon Bangkok Expressway and is expected to under-perform the Halcyon Technology. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Expressway and is 2.0 times less risky than Halcyon Technology. The stock trades about -0.03 of its potential returns per unit of risk. The Halcyon Technology Public is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 379.00 in Halcyon Technology Public on September 3, 2024 and sell it today you would earn a total of 29.00 from holding Halcyon Technology Public or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Expressway and vs. Halcyon Technology Public
Performance |
| Timeline |
| Bangkok Expressway and |
| Halcyon Technology Public |
Bangkok Expressway and Halcyon Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and Halcyon Technology
The main advantage of trading using opposite Bangkok Expressway and Halcyon Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, Halcyon Technology 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 Halcyon Technology will offset losses from the drop in Halcyon Technology'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 |
| Halcyon Technology vs. Hwa Fong Rubber | Halcyon Technology vs. Haad Thip Public | Halcyon Technology vs. Ichitan Group Public | Halcyon Technology vs. Hana Microelectronics 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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