Correlation Between Bangkok Land and Siri Prime
Can any of the company-specific risk be diversified away by investing in both Bangkok Land and Siri Prime 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 Siri Prime 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 Siri Prime Office, you can compare the effects of market volatilities on Bangkok Land and Siri Prime 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 Siri Prime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Land and Siri Prime.
Diversification Opportunities for Bangkok Land and Siri Prime
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bangkok and Siri is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Land Public and Siri Prime Office in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siri Prime Office 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 Siri Prime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siri Prime Office has no effect on the direction of Bangkok Land i.e., Bangkok Land and Siri Prime go up and down completely randomly.
Pair Corralation between Bangkok Land and Siri Prime
Assuming the 90 days trading horizon Bangkok Land Public is expected to generate 52.53 times more return on investment than Siri Prime. However, Bangkok Land is 52.53 times more volatile than Siri Prime Office. It trades about 0.08 of its potential returns per unit of risk. Siri Prime Office is currently generating about 0.08 per unit of risk. If you would invest 64.00 in Bangkok Land Public on August 25, 2024 and sell it today you would lose (4.00) from holding Bangkok Land Public or give up 6.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Land Public vs. Siri Prime Office
Performance |
| Timeline |
| Bangkok Land Public |
| Siri Prime Office |
Bangkok Land and Siri Prime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Land and Siri Prime
The main advantage of trading using opposite Bangkok Land and Siri Prime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Land position performs unexpectedly, Siri Prime 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 Siri Prime will offset losses from the drop in Siri Prime's long position.| Bangkok Land vs. Siri Prime Office | Bangkok Land vs. WHA Public | Bangkok Land vs. Supalai Public | Bangkok Land vs. Quality Houses Public |
| Siri Prime vs. WHA Public | Siri Prime vs. Supalai Public | Siri Prime vs. Quality Houses Public | Siri Prime vs. LPN Development 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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