Correlation Between Bangkok Expressway and Tropical Canning
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and Tropical Canning 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 Tropical Canning 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 Tropical Canning Public, you can compare the effects of market volatilities on Bangkok Expressway and Tropical Canning 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 Tropical Canning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and Tropical Canning.
Diversification Opportunities for Bangkok Expressway and Tropical Canning
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bangkok and Tropical is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and Tropical Canning Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tropical Canning 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 Tropical Canning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tropical Canning Public has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and Tropical Canning go up and down completely randomly.
Pair Corralation between Bangkok Expressway and Tropical Canning
Assuming the 90 days trading horizon Bangkok Expressway and is expected to generate 0.59 times more return on investment than Tropical Canning. However, Bangkok Expressway and is 1.69 times less risky than Tropical Canning. It trades about -0.49 of its potential returns per unit of risk. Tropical Canning Public is currently generating about -0.57 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Expressway and vs. Tropical Canning Public
Performance |
| Timeline |
| Bangkok Expressway and |
| Tropical Canning Public |
Bangkok Expressway and Tropical Canning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and Tropical Canning
The main advantage of trading using opposite Bangkok Expressway and Tropical Canning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, Tropical Canning 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 Tropical Canning will offset losses from the drop in Tropical Canning'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 |
| Tropical Canning vs. MK Restaurant Group | Tropical Canning vs. TRC Construction Public | Tropical Canning vs. Bangkok Expressway and | Tropical Canning 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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