Correlation Between Bangkok Sheet and CPR Gomu
Can any of the company-specific risk be diversified away by investing in both Bangkok Sheet and CPR Gomu 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 CPR Gomu 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 CPR Gomu Industrial, you can compare the effects of market volatilities on Bangkok Sheet and CPR Gomu 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 CPR Gomu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Sheet and CPR Gomu.
Diversification Opportunities for Bangkok Sheet and CPR Gomu
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bangkok and CPR is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Sheet Metal and CPR Gomu Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CPR Gomu Industrial 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 CPR Gomu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CPR Gomu Industrial has no effect on the direction of Bangkok Sheet i.e., Bangkok Sheet and CPR Gomu go up and down completely randomly.
Pair Corralation between Bangkok Sheet and CPR Gomu
Assuming the 90 days horizon Bangkok Sheet Metal is expected to generate 30.22 times more return on investment than CPR Gomu. However, Bangkok Sheet is 30.22 times more volatile than CPR Gomu Industrial. It trades about 0.08 of its potential returns per unit of risk. CPR Gomu Industrial is currently generating about 0.03 per unit of risk. If you would invest 270.00 in Bangkok Sheet Metal on September 19, 2024 and sell it today you would earn a total of 40.00 from holding Bangkok Sheet Metal or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Sheet Metal vs. CPR Gomu Industrial
Performance |
| Timeline |
| Bangkok Sheet Metal |
| CPR Gomu Industrial |
Bangkok Sheet and CPR Gomu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Sheet and CPR Gomu
The main advantage of trading using opposite Bangkok Sheet and CPR Gomu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Sheet position performs unexpectedly, CPR Gomu 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 CPR Gomu will offset losses from the drop in CPR Gomu'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 |
| CPR Gomu vs. Thoresen Thai Agencies | CPR Gomu vs. Sri Trang Agro Industry | CPR Gomu vs. TPI Polene Public | CPR Gomu vs. Ratchthani Leasing 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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