Correlation Between Bangkok Land and Country Group
Can any of the company-specific risk be diversified away by investing in both Bangkok Land and Country Group 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 Country Group 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 Country Group Development, you can compare the effects of market volatilities on Bangkok Land and Country Group 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 Country Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Land and Country Group.
Diversification Opportunities for Bangkok Land and Country Group
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangkok and Country is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Land Public and Country Group Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Country Group Development 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 Country Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Country Group Development has no effect on the direction of Bangkok Land i.e., Bangkok Land and Country Group go up and down completely randomly.
Pair Corralation between Bangkok Land and Country Group
Assuming the 90 days trading horizon Bangkok Land Public is expected to generate 0.61 times more return on investment than Country Group. However, Bangkok Land Public is 1.64 times less risky than Country Group. It trades about -0.12 of its potential returns per unit of risk. Country Group Development is currently generating about -0.16 per unit of risk. If you would invest 55.00 in Bangkok Land Public on November 3, 2024 and sell it today you would lose (3.00) from holding Bangkok Land Public or give up 5.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Land Public vs. Country Group Development
Performance |
| Timeline |
| Bangkok Land Public |
| Country Group Development |
Bangkok Land and Country Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Land and Country Group
The main advantage of trading using opposite Bangkok Land and Country Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Land position performs unexpectedly, Country Group 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 Country Group will offset losses from the drop in Country Group'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 |
| Country Group vs. Eastern Star Real | Country Group vs. Bangkok Land Public | Country Group vs. Ananda Development Public | Country Group vs. Better World Green |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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