Correlation Between BGrimm Power and CK Power
Can any of the company-specific risk be diversified away by investing in both BGrimm Power and CK Power 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 CK Power 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 CK Power Public, you can compare the effects of market volatilities on BGrimm Power and CK Power 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 CK Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGrimm Power and CK Power.
Diversification Opportunities for BGrimm Power and CK Power
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BGrimm and CKP is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding BGrimm Power Public and CK Power Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Power Public 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 CK Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Power Public has no effect on the direction of BGrimm Power i.e., BGrimm Power and CK Power go up and down completely randomly.
Pair Corralation between BGrimm Power and CK Power
Assuming the 90 days trading horizon BGrimm Power Public is expected to under-perform the CK Power. In addition to that, BGrimm Power is 1.06 times more volatile than CK Power Public. It trades about -0.05 of its total potential returns per unit of risk. CK Power Public is currently generating about -0.04 per unit of volatility. If you would invest 397.00 in CK Power Public on August 25, 2024 and sell it today you would lose (59.00) from holding CK Power Public or give up 14.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BGrimm Power Public vs. CK Power Public
Performance |
| Timeline |
| BGrimm Power Public |
| CK Power Public |
BGrimm Power and CK Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGrimm Power and CK Power
The main advantage of trading using opposite BGrimm Power and CK Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGrimm Power position performs unexpectedly, CK Power 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 CK Power will offset losses from the drop in CK Power'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 |
| CK Power vs. WHA Public | CK Power vs. TPI Polene Power | CK Power vs. Bangkok Expressway and | CK Power vs. BGrimm Power 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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