Correlation Between Bangkok Life and Kang Yong
Can any of the company-specific risk be diversified away by investing in both Bangkok Life and Kang Yong 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 Kang Yong 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 Kang Yong Electric, you can compare the effects of market volatilities on Bangkok Life and Kang Yong 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 Kang Yong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Life and Kang Yong.
Diversification Opportunities for Bangkok Life and Kang Yong
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangkok and Kang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Life Assurance and Kang Yong Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kang Yong Electric 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 Kang Yong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kang Yong Electric has no effect on the direction of Bangkok Life i.e., Bangkok Life and Kang Yong go up and down completely randomly.
Pair Corralation between Bangkok Life and Kang Yong
Assuming the 90 days trading horizon Bangkok Life is expected to generate 67.33 times less return on investment than Kang Yong. But when comparing it to its historical volatility, Bangkok Life Assurance is 28.14 times less risky than Kang Yong. It trades about 0.02 of its potential returns per unit of risk. Kang Yong Electric is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 27,220 in Kang Yong Electric on September 14, 2024 and sell it today you would earn a total of 1,580 from holding Kang Yong Electric or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Life Assurance vs. Kang Yong Electric
Performance |
| Timeline |
| Bangkok Life Assurance |
| Kang Yong Electric |
Bangkok Life and Kang Yong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Life and Kang Yong
The main advantage of trading using opposite Bangkok Life and Kang Yong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Life position performs unexpectedly, Kang Yong 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 Kang Yong will offset losses from the drop in Kang Yong's long position.| Bangkok Life vs. KGI Securities Public | Bangkok Life vs. Lalin Property Public | Bangkok Life vs. Hwa Fong Rubber | Bangkok Life vs. MCS Steel Public |
| Kang Yong vs. Hwa Fong Rubber | Kang Yong vs. Hana Microelectronics Public | Kang Yong vs. KGI Securities Public | Kang Yong vs. Haad Thip 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |