Correlation Between Bangkok Sheet and ALT Telecom
Can any of the company-specific risk be diversified away by investing in both Bangkok Sheet and ALT Telecom 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 Sheet and ALT Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Sheet Metal and ALT Telecom Public, you can compare the effects of market volatilities on Bangkok Sheet and ALT Telecom 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 Sheet with a short position of ALT Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Sheet and ALT Telecom.
Diversification Opportunities for Bangkok Sheet and ALT Telecom
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bangkok and ALT is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Sheet Metal and ALT Telecom Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALT Telecom Public and Bangkok Sheet 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 Sheet Metal are associated (or correlated) with ALT Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALT Telecom Public has no effect on the direction of Bangkok Sheet i.e., Bangkok Sheet and ALT Telecom go up and down completely randomly.
Pair Corralation between Bangkok Sheet and ALT Telecom
Assuming the 90 days horizon Bangkok Sheet Metal is expected to generate 1.0 times more return on investment than ALT Telecom. However, Bangkok Sheet Metal is 1.0 times less risky than ALT Telecom. It trades about 0.06 of its potential returns per unit of risk. ALT Telecom Public is currently generating about 0.06 per unit of risk. If you would invest 287.00 in Bangkok Sheet Metal on September 14, 2024 and sell it today you would earn a total of 25.00 from holding Bangkok Sheet Metal or generate 8.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Sheet Metal vs. ALT Telecom Public
Performance |
| Timeline |
| Bangkok Sheet Metal |
| ALT Telecom Public |
Bangkok Sheet and ALT Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Sheet and ALT Telecom
The main advantage of trading using opposite Bangkok Sheet and ALT Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Sheet position performs unexpectedly, ALT Telecom 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 ALT Telecom will offset losses from the drop in ALT Telecom's long position.| Bangkok Sheet vs. Chewathai Public | Bangkok Sheet vs. AIRA Factoring Public | Bangkok Sheet vs. Cho Thavee Public | Bangkok Sheet vs. G Capital Public |
| ALT Telecom vs. Land and Houses | ALT Telecom vs. Delta Electronics Public | ALT Telecom vs. The Siam Cement | ALT Telecom vs. Bangkok Bank 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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