Correlation Between Bangkok Expressway and SKijchai Enterprise
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and SKijchai Enterprise 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 SKijchai Enterprise 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 SKijchai Enterprise Public, you can compare the effects of market volatilities on Bangkok Expressway and SKijchai Enterprise 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 SKijchai Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and SKijchai Enterprise.
Diversification Opportunities for Bangkok Expressway and SKijchai Enterprise
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bangkok and SKijchai is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and SKijchai Enterprise Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SKijchai Enterprise 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 SKijchai Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SKijchai Enterprise has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and SKijchai Enterprise go up and down completely randomly.
Pair Corralation between Bangkok Expressway and SKijchai Enterprise
Assuming the 90 days trading horizon Bangkok Expressway and is expected to under-perform the SKijchai Enterprise. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Expressway and is 46.19 times less risky than SKijchai Enterprise. The stock trades about -0.01 of its potential returns per unit of risk. The SKijchai Enterprise Public is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 411.00 in SKijchai Enterprise Public on September 4, 2024 and sell it today you would earn a total of 129.00 from holding SKijchai Enterprise Public or generate 31.39% 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. SKijchai Enterprise Public
Performance |
| Timeline |
| Bangkok Expressway and |
| SKijchai Enterprise |
Bangkok Expressway and SKijchai Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and SKijchai Enterprise
The main advantage of trading using opposite Bangkok Expressway and SKijchai Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, SKijchai Enterprise 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 SKijchai Enterprise will offset losses from the drop in SKijchai Enterprise'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 |
| SKijchai Enterprise vs. Sahamitr Pressure Container | SKijchai Enterprise vs. Diamond Building Products | SKijchai Enterprise vs. Regional Container Lines | SKijchai Enterprise vs. Lalin Property 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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