Correlation Between Bangkok Ranch and GFPT Public
Can any of the company-specific risk be diversified away by investing in both Bangkok Ranch and GFPT Public 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 Ranch and GFPT Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Ranch PCL and GFPT Public, you can compare the effects of market volatilities on Bangkok Ranch and GFPT Public 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 Ranch with a short position of GFPT Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Ranch and GFPT Public.
Diversification Opportunities for Bangkok Ranch and GFPT Public
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Bangkok and GFPT is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Ranch PCL and GFPT Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFPT Public and Bangkok Ranch 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 Ranch PCL are associated (or correlated) with GFPT Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFPT Public has no effect on the direction of Bangkok Ranch i.e., Bangkok Ranch and GFPT Public go up and down completely randomly.
Pair Corralation between Bangkok Ranch and GFPT Public
Assuming the 90 days horizon Bangkok Ranch PCL is expected to under-perform the GFPT Public. But the stock apears to be less risky and, when comparing its historical volatility, Bangkok Ranch PCL is 1.39 times less risky than GFPT Public. The stock trades about -0.07 of its potential returns per unit of risk. The GFPT Public is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,282 in GFPT Public on August 28, 2024 and sell it today you would lose (202.00) from holding GFPT Public or give up 15.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bangkok Ranch PCL vs. GFPT Public
Performance |
| Timeline |
| Bangkok Ranch PCL |
| GFPT Public |
Bangkok Ranch and GFPT Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Ranch and GFPT Public
The main advantage of trading using opposite Bangkok Ranch and GFPT Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Ranch position performs unexpectedly, GFPT Public 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 GFPT Public will offset losses from the drop in GFPT Public's long position.| Bangkok Ranch vs. GFPT Public | Bangkok Ranch vs. Asian Sea | Bangkok Ranch vs. Buriram Sugar Public | Bangkok Ranch vs. Ichitan Group 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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