Correlation Between Bangkok Sheet and Thai Wah
Can any of the company-specific risk be diversified away by investing in both Bangkok Sheet and Thai Wah 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 Wah 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 Wah Public, you can compare the effects of market volatilities on Bangkok Sheet and Thai Wah 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 Wah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Sheet and Thai Wah.
Diversification Opportunities for Bangkok Sheet and Thai Wah
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bangkok and Thai is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Sheet Metal and Thai Wah Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Wah 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 Thai Wah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Wah Public has no effect on the direction of Bangkok Sheet i.e., Bangkok Sheet and Thai Wah go up and down completely randomly.
Pair Corralation between Bangkok Sheet and Thai Wah
Assuming the 90 days horizon Bangkok Sheet Metal is expected to generate 0.3 times more return on investment than Thai Wah. However, Bangkok Sheet Metal is 3.32 times less risky than Thai Wah. It trades about -0.2 of its potential returns per unit of risk. Thai Wah Public is currently generating about -0.07 per unit of risk. If you would invest 310.00 in Bangkok Sheet Metal on November 3, 2024 and sell it today you would lose (12.00) from holding Bangkok Sheet Metal or give up 3.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangkok Sheet Metal vs. Thai Wah Public
Performance |
| Timeline |
| Bangkok Sheet Metal |
| Thai Wah Public |
Bangkok Sheet and Thai Wah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Sheet and Thai Wah
The main advantage of trading using opposite Bangkok Sheet and Thai Wah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Sheet position performs unexpectedly, Thai Wah 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 Wah will offset losses from the drop in Thai Wah's long position.| Bangkok Sheet vs. BuilderSmart Public | Bangkok Sheet vs. CI Group Public | Bangkok Sheet vs. Cho Thavee Public | Bangkok Sheet vs. Comanche International Public |
| Thai Wah vs. Univanich Palm Oil | Thai Wah vs. Chiangmai Frozen Foods | Thai Wah vs. Dynasty Ceramic Public | Thai Wah vs. GFPT 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |