Correlation Between Bangkok Bank and CGX Energy
Can any of the company-specific risk be diversified away by investing in both Bangkok Bank and CGX Energy 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 Bangkok Bank and CGX Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Bank Public and CGX Energy, you can compare the effects of market volatilities on Bangkok Bank and CGX Energy 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 Bangkok Bank with a short position of CGX Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Bank and CGX Energy.
Diversification Opportunities for Bangkok Bank and CGX Energy
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Bangkok and CGX is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Bank Public and CGX Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGX Energy and Bangkok Bank 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 Bangkok Bank Public are associated (or correlated) with CGX Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGX Energy has no effect on the direction of Bangkok Bank i.e., Bangkok Bank and CGX Energy go up and down completely randomly.
Pair Corralation between Bangkok Bank and CGX Energy
Assuming the 90 days horizon Bangkok Bank Public is expected to generate 0.29 times more return on investment than CGX Energy. However, Bangkok Bank Public is 3.45 times less risky than CGX Energy. It trades about 0.22 of its potential returns per unit of risk. CGX Energy is currently generating about -0.11 per unit of risk. If you would invest 380.00 in Bangkok Bank Public on September 18, 2024 and sell it today you would earn a total of 35.00 from holding Bangkok Bank Public or generate 9.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Bangkok Bank Public vs. CGX Energy
Performance |
| Timeline |
| Bangkok Bank Public |
| CGX Energy |
Bangkok Bank and CGX Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Bank and CGX Energy
The main advantage of trading using opposite Bangkok Bank and CGX Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Bank position performs unexpectedly, CGX Energy 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 CGX Energy will offset losses from the drop in CGX Energy's long position.| Bangkok Bank vs. Morningstar Unconstrained Allocation | Bangkok Bank vs. Bondbloxx ETF Trust | Bangkok Bank vs. Spring Valley Acquisition | Bangkok Bank vs. Bondbloxx ETF Trust |
| CGX Energy vs. POSCO Holdings | CGX Energy vs. Schweizerische Nationalbank | CGX Energy vs. Berkshire Hathaway | CGX Energy vs. Berkshire Hathaway |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |