Correlation Between BGrimm Power and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both BGrimm Power and Bangkok Dusit 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 BGrimm Power and Bangkok Dusit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGrimm Power Public and Bangkok Dusit Medical, you can compare the effects of market volatilities on BGrimm Power and Bangkok Dusit 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 BGrimm Power with a short position of Bangkok Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGrimm Power and Bangkok Dusit.
Diversification Opportunities for BGrimm Power and Bangkok Dusit
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BGrimm and Bangkok is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding BGrimm Power Public and Bangkok Dusit Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Dusit Medical and BGrimm Power 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 BGrimm Power Public are associated (or correlated) with Bangkok Dusit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Dusit Medical has no effect on the direction of BGrimm Power i.e., BGrimm Power and Bangkok Dusit go up and down completely randomly.
Pair Corralation between BGrimm Power and Bangkok Dusit
Assuming the 90 days trading horizon BGrimm Power Public is expected to under-perform the Bangkok Dusit. In addition to that, BGrimm Power is 296.59 times more volatile than Bangkok Dusit Medical. It trades about -0.5 of its total potential returns per unit of risk. Bangkok Dusit Medical is currently generating about 0.23 per unit of volatility. If you would invest 2,399 in Bangkok Dusit Medical on December 4, 2024 and sell it today you would earn a total of 1.00 from holding Bangkok Dusit Medical or generate 0.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BGrimm Power Public vs. Bangkok Dusit Medical
Performance |
| Timeline |
| BGrimm Power Public |
| Bangkok Dusit Medical |
BGrimm Power and Bangkok Dusit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGrimm Power and Bangkok Dusit
The main advantage of trading using opposite BGrimm Power and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGrimm Power position performs unexpectedly, Bangkok Dusit 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 Bangkok Dusit will offset losses from the drop in Bangkok Dusit's long position.| BGrimm Power vs. Gulf Energy Development | BGrimm Power vs. Global Power Synergy | BGrimm Power vs. Energy Absolute Public | BGrimm Power vs. Bangkok Expressway and |
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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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