Correlation Between Bangkok Expressway and Thai Rung
Can any of the company-specific risk be diversified away by investing in both Bangkok Expressway and Thai Rung 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 Thai Rung 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 Thai Rung Union, you can compare the effects of market volatilities on Bangkok Expressway and Thai Rung 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 Thai Rung. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Expressway and Thai Rung.
Diversification Opportunities for Bangkok Expressway and Thai Rung
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bangkok and Thai is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Expressway and and Thai Rung Union in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Rung Union 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 Thai Rung. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Rung Union has no effect on the direction of Bangkok Expressway i.e., Bangkok Expressway and Thai Rung go up and down completely randomly.
Pair Corralation between Bangkok Expressway and Thai Rung
Assuming the 90 days trading horizon Bangkok Expressway and is expected to under-perform the Thai Rung. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Expressway and is 57.84 times less risky than Thai Rung. The stock trades about -0.05 of its potential returns per unit of risk. The Thai Rung Union is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Thai Rung Union on September 3, 2024 and sell it today you would lose (7.00) from holding Thai Rung Union or give up 2.15% 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. Thai Rung Union
Performance |
| Timeline |
| Bangkok Expressway and |
| Thai Rung Union |
Bangkok Expressway and Thai Rung Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Expressway and Thai Rung
The main advantage of trading using opposite Bangkok Expressway and Thai Rung positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Expressway position performs unexpectedly, Thai Rung 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 Thai Rung will offset losses from the drop in Thai Rung'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 |
| Thai Rung vs. Central Pattana Public | Thai Rung vs. CP ALL Public | Thai Rung vs. Bangkok Dusit Medical | Thai Rung vs. Airports of Thailand |
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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