Correlation Between BGrimm Power and Electricity Generating
Can any of the company-specific risk be diversified away by investing in both BGrimm Power and Electricity Generating 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 Electricity Generating 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 Electricity Generating Public, you can compare the effects of market volatilities on BGrimm Power and Electricity Generating 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 Electricity Generating. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGrimm Power and Electricity Generating.
Diversification Opportunities for BGrimm Power and Electricity Generating
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BGrimm and Electricity is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding BGrimm Power Public and Electricity Generating Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electricity Generating 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 Electricity Generating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electricity Generating has no effect on the direction of BGrimm Power i.e., BGrimm Power and Electricity Generating go up and down completely randomly.
Pair Corralation between BGrimm Power and Electricity Generating
Assuming the 90 days trading horizon BGrimm Power Public is expected to under-perform the Electricity Generating. In addition to that, BGrimm Power is 1.37 times more volatile than Electricity Generating Public. It trades about -0.03 of its total potential returns per unit of risk. Electricity Generating Public is currently generating about 0.02 per unit of volatility. If you would invest 11,987 in Electricity Generating Public on September 14, 2024 and sell it today you would earn a total of 363.00 from holding Electricity Generating Public or generate 3.03% 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. Electricity Generating Public
Performance |
| Timeline |
| BGrimm Power Public |
| Electricity Generating |
BGrimm Power and Electricity Generating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGrimm Power and Electricity Generating
The main advantage of trading using opposite BGrimm Power and Electricity Generating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGrimm Power position performs unexpectedly, Electricity Generating 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 Electricity Generating will offset losses from the drop in Electricity Generating's long position.| BGrimm Power vs. WHA Public | BGrimm Power vs. Global Power Synergy | BGrimm Power vs. TPI Polene Power | BGrimm Power vs. Bangkok Expressway and |
| Electricity Generating vs. The Siam Cement | Electricity Generating vs. CP ALL Public | Electricity Generating vs. Intouch Holdings Public | Electricity Generating vs. PTT 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |