Correlation Between Berli Jucker and Shangri La
Can any of the company-specific risk be diversified away by investing in both Berli Jucker and Shangri La 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 Shangri La 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 Shangri La Hotel Public, you can compare the effects of market volatilities on Berli Jucker and Shangri La 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 Shangri La. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berli Jucker and Shangri La.
Diversification Opportunities for Berli Jucker and Shangri La
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Berli and Shangri is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Berli Jucker Public and Shangri La Hotel Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shangri La Hotel 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 Shangri La. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shangri La Hotel has no effect on the direction of Berli Jucker i.e., Berli Jucker and Shangri La go up and down completely randomly.
Pair Corralation between Berli Jucker and Shangri La
Assuming the 90 days trading horizon Berli Jucker Public is expected to under-perform the Shangri La. In addition to that, Berli Jucker is 1.55 times more volatile than Shangri La Hotel Public. It trades about -0.19 of its total potential returns per unit of risk. Shangri La Hotel Public is currently generating about -0.25 per unit of volatility. If you would invest 4,650 in Shangri La Hotel Public on October 21, 2024 and sell it today you would lose (250.00) from holding Shangri La Hotel Public or give up 5.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Berli Jucker Public vs. Shangri La Hotel Public
Performance |
| Timeline |
| Berli Jucker Public |
| Shangri La Hotel |
Berli Jucker and Shangri La Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berli Jucker and Shangri La
The main advantage of trading using opposite Berli Jucker and Shangri La positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berli Jucker position performs unexpectedly, Shangri La 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 Shangri La will offset losses from the drop in Shangri La's long position.| Berli Jucker vs. Khon Kaen Sugar | Berli Jucker vs. Lam Soon Public | Berli Jucker vs. Lee Feed Mill | Berli Jucker vs. Bangkok Ranch PCL |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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