Correlation Between Bangkok Sheet and NSL Foods
Can any of the company-specific risk be diversified away by investing in both Bangkok Sheet and NSL Foods 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 NSL Foods 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 NSL Foods Public, you can compare the effects of market volatilities on Bangkok Sheet and NSL Foods 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 NSL Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Sheet and NSL Foods.
Diversification Opportunities for Bangkok Sheet and NSL Foods
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bangkok and NSL is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Sheet Metal and NSL Foods Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NSL Foods 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 NSL Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NSL Foods Public has no effect on the direction of Bangkok Sheet i.e., Bangkok Sheet and NSL Foods go up and down completely randomly.
Pair Corralation between Bangkok Sheet and NSL Foods
Assuming the 90 days horizon Bangkok Sheet Metal is expected to generate 34.97 times more return on investment than NSL Foods. However, Bangkok Sheet is 34.97 times more volatile than NSL Foods Public. It trades about 0.08 of its potential returns per unit of risk. NSL Foods Public is currently generating about 0.0 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. NSL Foods Public
Performance |
| Timeline |
| Bangkok Sheet Metal |
| NSL Foods Public |
Bangkok Sheet and NSL Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Sheet and NSL Foods
The main advantage of trading using opposite Bangkok Sheet and NSL Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Sheet position performs unexpectedly, NSL Foods 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 NSL Foods will offset losses from the drop in NSL Foods' 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 |
| NSL Foods vs. Asia Metal Public | NSL Foods vs. PINTHONG INDUSTRIAL PARK | NSL Foods vs. Lohakit Metal Public | NSL Foods vs. Ingress Industrial 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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