Correlation Between Bangkok Sheet and Communication System
Can any of the company-specific risk be diversified away by investing in both Bangkok Sheet and Communication System 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 Communication System 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 Communication System Solution, you can compare the effects of market volatilities on Bangkok Sheet and Communication System 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 Communication System. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Sheet and Communication System.
Diversification Opportunities for Bangkok Sheet and Communication System
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bangkok and Communication is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Sheet Metal and Communication System Solution in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Communication System 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 Communication System. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Communication System has no effect on the direction of Bangkok Sheet i.e., Bangkok Sheet and Communication System go up and down completely randomly.
Pair Corralation between Bangkok Sheet and Communication System
Assuming the 90 days horizon Bangkok Sheet Metal is expected to generate 0.43 times more return on investment than Communication System. However, Bangkok Sheet Metal is 2.33 times less risky than Communication System. It trades about -0.18 of its potential returns per unit of risk. Communication System Solution is currently generating about -0.13 per unit of risk. If you would invest 308.00 in Bangkok Sheet Metal on October 21, 2024 and sell it today you would lose (10.00) from holding Bangkok Sheet Metal or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Sheet Metal vs. Communication System Solution
Performance |
| Timeline |
| Bangkok Sheet Metal |
| Communication System |
Bangkok Sheet and Communication System Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Sheet and Communication System
The main advantage of trading using opposite Bangkok Sheet and Communication System positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Sheet position performs unexpectedly, Communication System 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 Communication System will offset losses from the drop in Communication System'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 |
| Communication System vs. Chularat Hospital Public | Communication System vs. Cal Comp Electronics Public | Communication System vs. Dynasty Ceramic Public | Communication System vs. Forth 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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