Correlation Between Bangsaphan Barmill and Asia Metal
Can any of the company-specific risk be diversified away by investing in both Bangsaphan Barmill and Asia Metal 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 Asia Metal 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 Asia Metal Public, you can compare the effects of market volatilities on Bangsaphan Barmill and Asia Metal 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 Asia Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangsaphan Barmill and Asia Metal.
Diversification Opportunities for Bangsaphan Barmill and Asia Metal
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bangsaphan and Asia is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bangsaphan Barmill Public and Asia Metal Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asia Metal 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 Asia Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asia Metal Public has no effect on the direction of Bangsaphan Barmill i.e., Bangsaphan Barmill and Asia Metal go up and down completely randomly.
Pair Corralation between Bangsaphan Barmill and Asia Metal
Assuming the 90 days trading horizon Bangsaphan Barmill Public is expected to generate 1.04 times more return on investment than Asia Metal. However, Bangsaphan Barmill is 1.04 times more volatile than Asia Metal Public. It trades about -0.03 of its potential returns per unit of risk. Asia Metal Public is currently generating about -0.34 per unit of risk. If you would invest 73.00 in Bangsaphan Barmill Public on September 1, 2024 and sell it today you would lose (1.00) from holding Bangsaphan Barmill Public or give up 1.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bangsaphan Barmill Public vs. Asia Metal Public
Performance |
| Timeline |
| Bangsaphan Barmill Public |
| Asia Metal Public |
Bangsaphan Barmill and Asia Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangsaphan Barmill and Asia Metal
The main advantage of trading using opposite Bangsaphan Barmill and Asia Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangsaphan Barmill position performs unexpectedly, Asia Metal 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 Metal will offset losses from the drop in Asia Metal's long position.| Bangsaphan Barmill vs. AAPICO Hitech Public | Bangsaphan Barmill vs. AP Public | Bangsaphan Barmill vs. Aikchol Hospital Public | Bangsaphan Barmill vs. Bank of Ayudhya |
| Asia Metal vs. 2S Metal Public | Asia Metal vs. AAPICO Hitech Public | Asia Metal vs. CSP Steel Center | Asia Metal vs. Bangsaphan Barmill 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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