Correlation Between BOS BETTER and Charoen Pokphand
Can any of the company-specific risk be diversified away by investing in both BOS BETTER and Charoen Pokphand 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 BOS BETTER and Charoen Pokphand into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOS BETTER ONLINE and Charoen Pokphand Foods, you can compare the effects of market volatilities on BOS BETTER and Charoen Pokphand 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 BOS BETTER with a short position of Charoen Pokphand. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and Charoen Pokphand.
Diversification Opportunities for BOS BETTER and Charoen Pokphand
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and Charoen is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and Charoen Pokphand Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Charoen Pokphand Foods and BOS BETTER 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 BOS BETTER ONLINE are associated (or correlated) with Charoen Pokphand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Charoen Pokphand Foods has no effect on the direction of BOS BETTER i.e., BOS BETTER and Charoen Pokphand go up and down completely randomly.
Pair Corralation between BOS BETTER and Charoen Pokphand
If you would invest 56.00 in Charoen Pokphand Foods on August 29, 2024 and sell it today you would earn a total of 9.00 from holding Charoen Pokphand Foods or generate 16.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BOS BETTER ONLINE vs. Charoen Pokphand Foods
Performance |
| Timeline |
| BOS BETTER ONLINE |
| Charoen Pokphand Foods |
BOS BETTER and Charoen Pokphand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS BETTER and Charoen Pokphand
The main advantage of trading using opposite BOS BETTER and Charoen Pokphand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER position performs unexpectedly, Charoen Pokphand 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 Charoen Pokphand will offset losses from the drop in Charoen Pokphand's long position.| BOS BETTER vs. Apple Inc | BOS BETTER vs. Apple Inc | BOS BETTER vs. Superior Plus Corp | BOS BETTER vs. SIVERS SEMICONDUCTORS AB |
| Charoen Pokphand vs. Tyson Foods | Charoen Pokphand vs. SalMar ASA | Charoen Pokphand vs. Superior Plus Corp | Charoen Pokphand vs. SIVERS SEMICONDUCTORS AB |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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