Correlation Between Bangkok Expressway and Rojana Industrial
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and Rojana Industrial 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 Rojana Industrial 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 Rojana Industrial Park, you can compare the effects of market volatilities on Bangkok Expressway and Rojana Industrial 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 Rojana Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and Rojana Industrial.
Diversification Opportunities for Bangkok Expressway and Rojana Industrial
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bangkok and Rojana is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and Rojana Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rojana Industrial Park 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 Rojana Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rojana Industrial Park has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and Rojana Industrial go up and down completely randomly.
Pair Corralation between Bangkok Expressway and Rojana Industrial
Assuming the 90 days trading horizon Bangkok Expressway is expected to generate 2.63 times less return on investment than Rojana Industrial. But when comparing it to its historical volatility, Bangkok Expressway and is 1.73 times less risky than Rojana Industrial. It trades about 0.03 of its potential returns per unit of risk. Rojana Industrial Park is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 581.00 in Rojana Industrial Park on August 28, 2024 and sell it today you would earn a total of 79.00 from holding Rojana Industrial Park or generate 13.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Expressway and vs. Rojana Industrial Park
Performance |
| Timeline |
| Bangkok Expressway and |
| Rojana Industrial Park |
Bangkok Expressway and Rojana Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and Rojana Industrial
The main advantage of trading using opposite Bangkok Expressway and Rojana Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, Rojana Industrial 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 Rojana Industrial will offset losses from the drop in Rojana Industrial's long position.| Bangkok Expressway vs. Tata Steel Public | Bangkok Expressway vs. Thaifoods Group Public | Bangkok Expressway vs. TMT Steel Public | Bangkok Expressway vs. The Erawan Group |
| Rojana Industrial vs. WHA Public | Rojana Industrial vs. TPI Polene Power | Rojana Industrial vs. Bangkok Expressway and | Rojana Industrial vs. BGrimm Power 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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