Correlation Between BPS TECHNOLOGY and Regional Container
Can any of the company-specific risk be diversified away by investing in both BPS TECHNOLOGY and Regional Container 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 Regional Container 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 Regional Container Lines, you can compare the effects of market volatilities on BPS TECHNOLOGY and Regional Container 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 Regional Container. Check out your portfolio center. Please also check ongoing floating volatility patterns of BPS TECHNOLOGY and Regional Container.
Diversification Opportunities for BPS TECHNOLOGY and Regional Container
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BPS and Regional is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding BPS TECHNOLOGY PUBLIC and Regional Container Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regional Container Lines 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 Regional Container. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regional Container Lines has no effect on the direction of BPS TECHNOLOGY i.e., BPS TECHNOLOGY and Regional Container go up and down completely randomly.
Pair Corralation between BPS TECHNOLOGY and Regional Container
Assuming the 90 days trading horizon BPS TECHNOLOGY PUBLIC is expected to under-perform the Regional Container. But the stock apears to be less risky and, when comparing its historical volatility, BPS TECHNOLOGY PUBLIC is 11.55 times less risky than Regional Container. The stock trades about -0.07 of its potential returns per unit of risk. The Regional Container Lines is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,000 in Regional Container Lines on September 12, 2024 and sell it today you would lose (75.00) from holding Regional Container Lines or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 34.51% |
| Values | Daily Returns |
BPS TECHNOLOGY PUBLIC vs. Regional Container Lines
Performance |
| Timeline |
| BPS TECHNOLOGY PUBLIC |
| Regional Container Lines |
BPS TECHNOLOGY and Regional Container Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BPS TECHNOLOGY and Regional Container
The main advantage of trading using opposite BPS TECHNOLOGY and Regional Container positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BPS TECHNOLOGY position performs unexpectedly, Regional Container 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 Regional Container will offset losses from the drop in Regional Container's long position.| BPS TECHNOLOGY vs. Delta Electronics Public | BPS TECHNOLOGY vs. Delta Electronics Public | BPS TECHNOLOGY vs. Airports of Thailand | BPS TECHNOLOGY vs. Airports of Thailand |
| Regional Container vs. Fine Metal Technologies | Regional Container vs. 2S Metal Public | Regional Container vs. Warrix Sport PCL | Regional Container vs. Porn Prom Metal |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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