Correlation Between Berli Jucker and Bangkok Dusit
Can any of the company-specific risk be diversified away by investing in both Berli Jucker 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 Berli Jucker and Bangkok Dusit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berli Jucker Public and Bangkok Dusit Medical, you can compare the effects of market volatilities on Berli Jucker 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 Berli Jucker with a short position of Bangkok Dusit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berli Jucker and Bangkok Dusit.
Diversification Opportunities for Berli Jucker and Bangkok Dusit
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Berli and Bangkok is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Berli Jucker 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 Berli Jucker 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 Berli Jucker 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 Berli Jucker i.e., Berli Jucker and Bangkok Dusit go up and down completely randomly.
Pair Corralation between Berli Jucker and Bangkok Dusit
Assuming the 90 days trading horizon Berli Jucker Public is expected to generate 0.95 times more return on investment than Bangkok Dusit. However, Berli Jucker Public is 1.06 times less risky than Bangkok Dusit. It trades about -0.01 of its potential returns per unit of risk. Bangkok Dusit Medical is currently generating about -0.28 per unit of risk. If you would invest 2,370 in Berli Jucker Public on September 2, 2024 and sell it today you would lose (10.00) from holding Berli Jucker Public or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berli Jucker Public vs. Bangkok Dusit Medical
Performance |
| Timeline |
| Berli Jucker Public |
| Bangkok Dusit Medical |
Berli Jucker and Bangkok Dusit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berli Jucker and Bangkok Dusit
The main advantage of trading using opposite Berli Jucker and Bangkok Dusit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berli Jucker 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.| Berli Jucker vs. MK Restaurant Group | Berli Jucker vs. TRC Construction Public | Berli Jucker vs. Bangkok Expressway and | Berli Jucker vs. Lohakit Metal Public |
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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