Correlation Between Bangkok Life and AAPICO Hitech
Can any of the company-specific risk be diversified away by investing in both Bangkok Life and AAPICO Hitech 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 Life and AAPICO Hitech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Life Assurance and AAPICO Hitech Public, you can compare the effects of market volatilities on Bangkok Life and AAPICO Hitech 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 Life with a short position of AAPICO Hitech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Life and AAPICO Hitech.
Diversification Opportunities for Bangkok Life and AAPICO Hitech
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bangkok and AAPICO is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Life Assurance and AAPICO Hitech Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAPICO Hitech Public and Bangkok Life 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 Life Assurance are associated (or correlated) with AAPICO Hitech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAPICO Hitech Public has no effect on the direction of Bangkok Life i.e., Bangkok Life and AAPICO Hitech go up and down completely randomly.
Pair Corralation between Bangkok Life and AAPICO Hitech
Assuming the 90 days trading horizon Bangkok Life Assurance is expected to under-perform the AAPICO Hitech. In addition to that, Bangkok Life is 1.24 times more volatile than AAPICO Hitech Public. It trades about -0.23 of its total potential returns per unit of risk. AAPICO Hitech Public is currently generating about -0.19 per unit of volatility. If you would invest 2,040 in AAPICO Hitech Public on August 29, 2024 and sell it today you would lose (220.00) from holding AAPICO Hitech Public or give up 10.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bangkok Life Assurance vs. AAPICO Hitech Public
Performance |
| Timeline |
| Bangkok Life Assurance |
| AAPICO Hitech Public |
Bangkok Life and AAPICO Hitech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Life and AAPICO Hitech
The main advantage of trading using opposite Bangkok Life and AAPICO Hitech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Life position performs unexpectedly, AAPICO Hitech 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 AAPICO Hitech will offset losses from the drop in AAPICO Hitech's long position.| Bangkok Life vs. Karmarts Public | Bangkok Life vs. Kang Yong Electric | Bangkok Life vs. Kiatnakin Phatra Bank | Bangkok Life vs. SCG PACKAGING PCL NVDR |
| AAPICO Hitech vs. Delta Electronics Public | AAPICO Hitech vs. Namwiwat Medical | AAPICO Hitech vs. Silicon Craft Technology | AAPICO Hitech vs. Winnergy Medical 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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