Correlation Between Bangkok Expressway and Khon Kaen
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and Khon Kaen 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 Khon Kaen 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 Khon Kaen Sugar, you can compare the effects of market volatilities on Bangkok Expressway and Khon Kaen 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 Khon Kaen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and Khon Kaen.
Diversification Opportunities for Bangkok Expressway and Khon Kaen
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bangkok and Khon is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and Khon Kaen Sugar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Khon Kaen Sugar 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 Khon Kaen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Khon Kaen Sugar has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and Khon Kaen go up and down completely randomly.
Pair Corralation between Bangkok Expressway and Khon Kaen
Assuming the 90 days trading horizon Bangkok Expressway and is expected to under-perform the Khon Kaen. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Expressway and is 1.63 times less risky than Khon Kaen. The stock trades about -0.33 of its potential returns per unit of risk. The Khon Kaen Sugar is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 204.00 in Khon Kaen Sugar on August 31, 2024 and sell it today you would lose (9.00) from holding Khon Kaen Sugar or give up 4.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Expressway and vs. Khon Kaen Sugar
Performance |
| Timeline |
| Bangkok Expressway and |
| Khon Kaen Sugar |
Bangkok Expressway and Khon Kaen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and Khon Kaen
The main advantage of trading using opposite Bangkok Expressway and Khon Kaen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, Khon Kaen 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 Khon Kaen will offset losses from the drop in Khon Kaen'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 |
| Khon Kaen vs. MK Restaurant Group | Khon Kaen vs. TRC Construction Public | Khon Kaen vs. Bangkok Expressway and | Khon Kaen vs. Lohakit Metal 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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