Correlation Between Bangkok Sheet and Thai Coating
Can any of the company-specific risk be diversified away by investing in both Bangkok Sheet and Thai Coating 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 Thai Coating 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 Thai Coating Industrial, you can compare the effects of market volatilities on Bangkok Sheet and Thai Coating 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 Thai Coating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Sheet and Thai Coating.
Diversification Opportunities for Bangkok Sheet and Thai Coating
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bangkok and Thai is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Sheet Metal and Thai Coating Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Coating 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 Thai Coating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Coating Industrial has no effect on the direction of Bangkok Sheet i.e., Bangkok Sheet and Thai Coating go up and down completely randomly.
Pair Corralation between Bangkok Sheet and Thai Coating
Assuming the 90 days horizon Bangkok Sheet Metal is expected to generate 14.26 times more return on investment than Thai Coating. However, Bangkok Sheet is 14.26 times more volatile than Thai Coating Industrial. It trades about 0.04 of its potential returns per unit of risk. Thai Coating Industrial is currently generating about 0.01 per unit of risk. If you would invest 428.00 in Bangkok Sheet Metal on September 13, 2024 and sell it today you would lose (122.00) from holding Bangkok Sheet Metal or give up 28.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bangkok Sheet Metal vs. Thai Coating Industrial
Performance |
| Timeline |
| Bangkok Sheet Metal |
| Thai Coating Industrial |
Bangkok Sheet and Thai Coating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Sheet and Thai Coating
The main advantage of trading using opposite Bangkok Sheet and Thai Coating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Sheet position performs unexpectedly, Thai Coating 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 Thai Coating will offset losses from the drop in Thai Coating'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 |
| Thai Coating vs. Thantawan Industry Public | Thai Coating vs. Thai Packaging Printing | Thai Coating vs. Thai Metal Drum | Thai Coating vs. Thai Film Industries |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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