Correlation Between Bangkok Sheet and Itthirit Nice
Can any of the company-specific risk be diversified away by investing in both Bangkok Sheet and Itthirit Nice 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 Itthirit Nice 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 Itthirit Nice Corp, you can compare the effects of market volatilities on Bangkok Sheet and Itthirit Nice 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 Itthirit Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Sheet and Itthirit Nice.
Diversification Opportunities for Bangkok Sheet and Itthirit Nice
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bangkok and Itthirit is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Sheet Metal and Itthirit Nice Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itthirit Nice Corp 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 Itthirit Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itthirit Nice Corp has no effect on the direction of Bangkok Sheet i.e., Bangkok Sheet and Itthirit Nice go up and down completely randomly.
Pair Corralation between Bangkok Sheet and Itthirit Nice
Assuming the 90 days horizon Bangkok Sheet Metal is expected to generate 12.67 times more return on investment than Itthirit Nice. However, Bangkok Sheet is 12.67 times more volatile than Itthirit Nice Corp. It trades about 0.05 of its potential returns per unit of risk. Itthirit Nice Corp is currently generating about 0.0 per unit of risk. If you would invest 375.00 in Bangkok Sheet Metal on September 19, 2024 and sell it today you would lose (65.00) from holding Bangkok Sheet Metal or give up 17.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Sheet Metal vs. Itthirit Nice Corp
Performance |
| Timeline |
| Bangkok Sheet Metal |
| Itthirit Nice Corp |
Bangkok Sheet and Itthirit Nice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Sheet and Itthirit Nice
The main advantage of trading using opposite Bangkok Sheet and Itthirit Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Sheet position performs unexpectedly, Itthirit Nice 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 Itthirit Nice will offset losses from the drop in Itthirit Nice'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 |
| Itthirit Nice vs. 2S Metal Public | Itthirit Nice vs. Thai Coating Industrial | Itthirit Nice vs. CPR Gomu Industrial | Itthirit Nice vs. Bangkok Sheet Metal |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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