Correlation Between BPS TECHNOLOGY and Siam Wellness
Can any of the company-specific risk be diversified away by investing in both BPS TECHNOLOGY and Siam Wellness 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 Siam Wellness 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 Siam Wellness Group, you can compare the effects of market volatilities on BPS TECHNOLOGY and Siam Wellness 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 Siam Wellness. Check out your portfolio center. Please also check ongoing floating volatility patterns of BPS TECHNOLOGY and Siam Wellness.
Diversification Opportunities for BPS TECHNOLOGY and Siam Wellness
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between BPS and Siam is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding BPS TECHNOLOGY PUBLIC and Siam Wellness Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siam Wellness 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 Siam Wellness. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siam Wellness Group has no effect on the direction of BPS TECHNOLOGY i.e., BPS TECHNOLOGY and Siam Wellness go up and down completely randomly.
Pair Corralation between BPS TECHNOLOGY and Siam Wellness
Assuming the 90 days trading horizon BPS TECHNOLOGY PUBLIC is expected to under-perform the Siam Wellness. In addition to that, BPS TECHNOLOGY is 1.32 times more volatile than Siam Wellness Group. It trades about -0.19 of its total potential returns per unit of risk. Siam Wellness Group is currently generating about 0.15 per unit of volatility. If you would invest 660.00 in Siam Wellness Group on September 3, 2024 and sell it today you would earn a total of 60.00 from holding Siam Wellness Group or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BPS TECHNOLOGY PUBLIC vs. Siam Wellness Group
Performance |
| Timeline |
| BPS TECHNOLOGY PUBLIC |
| Siam Wellness Group |
BPS TECHNOLOGY and Siam Wellness Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BPS TECHNOLOGY and Siam Wellness
The main advantage of trading using opposite BPS TECHNOLOGY and Siam Wellness positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BPS TECHNOLOGY position performs unexpectedly, Siam Wellness 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 Siam Wellness will offset losses from the drop in Siam Wellness' 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 |
| Siam Wellness vs. Minor International Public | Siam Wellness vs. Central Plaza Hotel | Siam Wellness vs. The Erawan Group | Siam Wellness vs. After You 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |