Correlation Between Bangkok Land and Porn Prom
Can any of the company-specific risk be diversified away by investing in both Bangkok Land and Porn Prom 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 Porn Prom 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 Porn Prom Metal, you can compare the effects of market volatilities on Bangkok Land and Porn Prom 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 Porn Prom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Land and Porn Prom.
Diversification Opportunities for Bangkok Land and Porn Prom
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bangkok and Porn is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Land Public and Porn Prom Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porn Prom Metal 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 Porn Prom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porn Prom Metal has no effect on the direction of Bangkok Land i.e., Bangkok Land and Porn Prom go up and down completely randomly.
Pair Corralation between Bangkok Land and Porn Prom
Assuming the 90 days trading horizon Bangkok Land Public is expected to generate 15.16 times more return on investment than Porn Prom. However, Bangkok Land is 15.16 times more volatile than Porn Prom Metal. It trades about 0.04 of its potential returns per unit of risk. Porn Prom Metal is currently generating about 0.0 per unit of risk. If you would invest 103.00 in Bangkok Land Public on August 28, 2024 and sell it today you would lose (43.00) from holding Bangkok Land Public or give up 41.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.78% |
| Values | Daily Returns |
Bangkok Land Public vs. Porn Prom Metal
Performance |
| Timeline |
| Bangkok Land Public |
| Porn Prom Metal |
Bangkok Land and Porn Prom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Land and Porn Prom
The main advantage of trading using opposite Bangkok Land and Porn Prom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Land position performs unexpectedly, Porn Prom 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 Porn Prom will offset losses from the drop in Porn Prom's long position.The idea behind Bangkok Land Public and Porn Prom Metal pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Porn Prom vs. WHA Public | Porn Prom vs. Siri Prime Office | Porn Prom vs. Ananda Development Public | Porn Prom vs. Bangkok Land 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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