Correlation Between BGT Public and ASIA Capital
Can any of the company-specific risk be diversified away by investing in both BGT Public and ASIA Capital 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 BGT Public and ASIA Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGT Public and ASIA Capital Group, you can compare the effects of market volatilities on BGT Public and ASIA Capital 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 BGT Public with a short position of ASIA Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGT Public and ASIA Capital.
Diversification Opportunities for BGT Public and ASIA Capital
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BGT and ASIA is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding BGT Public and ASIA Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASIA Capital Group and BGT Public 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 BGT Public are associated (or correlated) with ASIA Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASIA Capital Group has no effect on the direction of BGT Public i.e., BGT Public and ASIA Capital go up and down completely randomly.
Pair Corralation between BGT Public and ASIA Capital
Assuming the 90 days trading horizon BGT Public is expected to generate 0.1 times more return on investment than ASIA Capital. However, BGT Public is 9.68 times less risky than ASIA Capital. It trades about -0.17 of its potential returns per unit of risk. ASIA Capital Group is currently generating about -0.22 per unit of risk. If you would invest 58.00 in BGT Public on September 3, 2024 and sell it today you would lose (5.00) from holding BGT Public or give up 8.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
BGT Public vs. ASIA Capital Group
Performance |
| Timeline |
| BGT Public |
| ASIA Capital Group |
BGT Public and ASIA Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGT Public and ASIA Capital
The main advantage of trading using opposite BGT Public and ASIA Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGT Public position performs unexpectedly, ASIA Capital 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 ASIA Capital will offset losses from the drop in ASIA Capital's long position.| BGT Public vs. Cho Thavee Public | BGT Public vs. G Capital Public | BGT Public vs. CI Group Public | BGT Public vs. ASIA Capital Group |
| ASIA Capital vs. Multibax Public | ASIA Capital vs. Forth Smart Service | ASIA Capital vs. LPN Development Public | ASIA Capital vs. Jasmine International 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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