Correlation Between Bangsaphan Barmill and AJ Plast
Can any of the company-specific risk be diversified away by investing in both Bangsaphan Barmill and AJ Plast 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 Bangsaphan Barmill and AJ Plast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangsaphan Barmill Public and AJ Plast Public, you can compare the effects of market volatilities on Bangsaphan Barmill and AJ Plast 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 Bangsaphan Barmill with a short position of AJ Plast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangsaphan Barmill and AJ Plast.
Diversification Opportunities for Bangsaphan Barmill and AJ Plast
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Bangsaphan and AJ Plast is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Bangsaphan Barmill Public and AJ Plast Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AJ Plast Public and Bangsaphan Barmill 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 Bangsaphan Barmill Public are associated (or correlated) with AJ Plast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AJ Plast Public has no effect on the direction of Bangsaphan Barmill i.e., Bangsaphan Barmill and AJ Plast go up and down completely randomly.
Pair Corralation between Bangsaphan Barmill and AJ Plast
Assuming the 90 days trading horizon Bangsaphan Barmill Public is expected to generate 0.51 times more return on investment than AJ Plast. However, Bangsaphan Barmill Public is 1.95 times less risky than AJ Plast. It trades about -0.04 of its potential returns per unit of risk. AJ Plast Public is currently generating about -0.38 per unit of risk. If you would invest 72.00 in Bangsaphan Barmill Public on November 27, 2024 and sell it today you would lose (3.00) from holding Bangsaphan Barmill Public or give up 4.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangsaphan Barmill Public vs. AJ Plast Public
Performance |
| Timeline |
| Bangsaphan Barmill Public |
| AJ Plast Public |
Bangsaphan Barmill and AJ Plast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangsaphan Barmill and AJ Plast
The main advantage of trading using opposite Bangsaphan Barmill and AJ Plast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangsaphan Barmill position performs unexpectedly, AJ Plast 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 AJ Plast will offset losses from the drop in AJ Plast's long position.| Bangsaphan Barmill vs. Asia Metal Public | Bangsaphan Barmill vs. Chonburi Concrete Product | Bangsaphan Barmill vs. Asia Plus Group | Bangsaphan Barmill vs. CSP Steel Center |
| AJ Plast vs. AAPICO Hitech Public | AJ Plast vs. AP Public | AJ Plast vs. Aikchol Hospital Public | AJ Plast vs. Bank of Ayudhya |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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