Correlation Between Bangkok Land and AP Public
Can any of the company-specific risk be diversified away by investing in both Bangkok Land and AP Public 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 Land and AP Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Land Public and AP Public, you can compare the effects of market volatilities on Bangkok Land and AP Public 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 Land with a short position of AP Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Land and AP Public.
Diversification Opportunities for Bangkok Land and AP Public
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bangkok and AP Public is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Land Public and AP Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AP Public and Bangkok Land 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 Land Public are associated (or correlated) with AP Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AP Public has no effect on the direction of Bangkok Land i.e., Bangkok Land and AP Public go up and down completely randomly.
Pair Corralation between Bangkok Land and AP Public
Assuming the 90 days trading horizon Bangkok Land Public is expected to generate 34.31 times more return on investment than AP Public. However, Bangkok Land is 34.31 times more volatile than AP Public. It trades about 0.05 of its potential returns per unit of risk. AP Public is currently generating about -0.03 per unit of risk. If you would invest 75.00 in Bangkok Land Public on September 12, 2024 and sell it today you would lose (14.00) from holding Bangkok Land Public or give up 18.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.69% |
| Values | Daily Returns |
Bangkok Land Public vs. AP Public
Performance |
| Timeline |
| Bangkok Land Public |
| AP Public |
Bangkok Land and AP Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Land and AP Public
The main advantage of trading using opposite Bangkok Land and AP Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Land position performs unexpectedly, AP Public 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 AP Public will offset losses from the drop in AP Public's long position.| Bangkok Land vs. Siri Prime Office | Bangkok Land vs. BTS Group Holdings | Bangkok Land vs. Quality Houses Public | Bangkok Land vs. Land and Houses |
| AP Public vs. Land and Houses | AP Public vs. Quality Houses Public | AP Public vs. Bangkok Bank Public | AP Public vs. Siri Prime Office |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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