Correlation Between Bangkok Expressway and PCS Machine
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and PCS Machine 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 PCS Machine 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 PCS Machine Group, you can compare the effects of market volatilities on Bangkok Expressway and PCS Machine 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 PCS Machine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and PCS Machine.
Diversification Opportunities for Bangkok Expressway and PCS Machine
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bangkok and PCS is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and PCS Machine Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PCS Machine Group 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 PCS Machine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PCS Machine Group has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and PCS Machine go up and down completely randomly.
Pair Corralation between Bangkok Expressway and PCS Machine
Assuming the 90 days trading horizon Bangkok Expressway and is expected to under-perform the PCS Machine. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Expressway and is 126.05 times less risky than PCS Machine. The stock trades about -0.06 of its potential returns per unit of risk. The PCS Machine Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 472.00 in PCS Machine Group on September 2, 2024 and sell it today you would lose (42.00) from holding PCS Machine Group or give up 8.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Expressway and vs. PCS Machine Group
Performance |
| Timeline |
| Bangkok Expressway and |
| PCS Machine Group |
Bangkok Expressway and PCS Machine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and PCS Machine
The main advantage of trading using opposite Bangkok Expressway and PCS Machine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, PCS Machine 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 PCS Machine will offset losses from the drop in PCS Machine'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 |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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