Correlation Between BPS TECHNOLOGY and ASIA Capital
Can any of the company-specific risk be diversified away by investing in both BPS TECHNOLOGY and ASIA Capital 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 BPS TECHNOLOGY and ASIA Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BPS TECHNOLOGY PUBLIC and ASIA Capital Group, you can compare the effects of market volatilities on BPS TECHNOLOGY and ASIA Capital 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 BPS TECHNOLOGY with a short position of ASIA Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of BPS TECHNOLOGY and ASIA Capital.
Diversification Opportunities for BPS TECHNOLOGY and ASIA Capital
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between BPS and ASIA is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding BPS TECHNOLOGY PUBLIC and ASIA Capital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASIA Capital Group and BPS TECHNOLOGY 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 BPS TECHNOLOGY PUBLIC are associated (or correlated) with ASIA Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASIA Capital Group has no effect on the direction of BPS TECHNOLOGY i.e., BPS TECHNOLOGY and ASIA Capital go up and down completely randomly.
Pair Corralation between BPS TECHNOLOGY and ASIA Capital
Assuming the 90 days trading horizon BPS TECHNOLOGY is expected to generate 174.2 times less return on investment than ASIA Capital. But when comparing it to its historical volatility, BPS TECHNOLOGY PUBLIC is 22.56 times less risky than ASIA Capital. It trades about 0.01 of its potential returns per unit of risk. ASIA Capital Group is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 33.00 in ASIA Capital Group on September 1, 2024 and sell it today you would lose (33.00) from holding ASIA Capital Group or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BPS TECHNOLOGY PUBLIC vs. ASIA Capital Group
Performance |
| Timeline |
| BPS TECHNOLOGY PUBLIC |
| ASIA Capital Group |
BPS TECHNOLOGY and ASIA Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BPS TECHNOLOGY and ASIA Capital
The main advantage of trading using opposite BPS TECHNOLOGY and ASIA Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BPS TECHNOLOGY position performs unexpectedly, ASIA Capital 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 ASIA Capital will offset losses from the drop in ASIA Capital's long position.| BPS TECHNOLOGY vs. AP Public | BPS TECHNOLOGY vs. TRC Construction Public | BPS TECHNOLOGY vs. Bangkok Expressway and | BPS TECHNOLOGY vs. Lohakit Metal Public |
| ASIA Capital vs. East Coast Furnitech | ASIA Capital vs. Filter Vision Public | ASIA Capital vs. Cho Thavee Public | ASIA Capital vs. Akkhie Prakarn 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |