Correlation Between Bangkok Expressway and SP Syndicate
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and SP Syndicate 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 SP Syndicate 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 SP Syndicate Public, you can compare the effects of market volatilities on Bangkok Expressway and SP Syndicate 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 SP Syndicate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and SP Syndicate.
Diversification Opportunities for Bangkok Expressway and SP Syndicate
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangkok and SNP is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and SP Syndicate Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Syndicate 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 SP Syndicate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Syndicate Public has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and SP Syndicate go up and down completely randomly.
Pair Corralation between Bangkok Expressway and SP Syndicate
Assuming the 90 days trading horizon Bangkok Expressway and is expected to generate 0.65 times more return on investment than SP Syndicate. However, Bangkok Expressway and is 1.55 times less risky than SP Syndicate. It trades about -0.49 of its potential returns per unit of risk. SP Syndicate Public is currently generating about -0.47 per unit of risk. If you would invest 800.00 in Bangkok Expressway and on September 2, 2024 and sell it today you would lose (70.00) from holding Bangkok Expressway and or give up 8.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Expressway and vs. SP Syndicate Public
Performance |
| Timeline |
| Bangkok Expressway and |
| SP Syndicate Public |
Bangkok Expressway and SP Syndicate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and SP Syndicate
The main advantage of trading using opposite Bangkok Expressway and SP Syndicate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, SP Syndicate 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 SP Syndicate will offset losses from the drop in SP Syndicate'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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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