Correlation Between BGrimm Power and TPI Polene
Can any of the company-specific risk be diversified away by investing in both BGrimm Power and TPI Polene 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 TPI Polene 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 TPI Polene Power, you can compare the effects of market volatilities on BGrimm Power and TPI Polene 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 TPI Polene. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGrimm Power and TPI Polene.
Diversification Opportunities for BGrimm Power and TPI Polene
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BGrimm and TPI is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding BGrimm Power Public and TPI Polene Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TPI Polene Power 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 TPI Polene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TPI Polene Power has no effect on the direction of BGrimm Power i.e., BGrimm Power and TPI Polene go up and down completely randomly.
Pair Corralation between BGrimm Power and TPI Polene
Assuming the 90 days trading horizon BGrimm Power Public is expected to under-perform the TPI Polene. In addition to that, BGrimm Power is 1.22 times more volatile than TPI Polene Power. It trades about -0.25 of its total potential returns per unit of risk. TPI Polene Power is currently generating about 0.06 per unit of volatility. If you would invest 298.00 in TPI Polene Power on August 25, 2024 and sell it today you would earn a total of 4.00 from holding TPI Polene Power or generate 1.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BGrimm Power Public vs. TPI Polene Power
Performance |
| Timeline |
| BGrimm Power Public |
| TPI Polene Power |
BGrimm Power and TPI Polene Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGrimm Power and TPI Polene
The main advantage of trading using opposite BGrimm Power and TPI Polene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGrimm Power position performs unexpectedly, TPI Polene 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 TPI Polene will offset losses from the drop in TPI Polene'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 |
| TPI Polene vs. Ratch Group Public | TPI Polene vs. BCPG Public | TPI Polene vs. Gulf Energy Development | TPI Polene vs. BTS Group Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |