Correlation Between Bangsaphan Barmill and CSP Steel
Can any of the company-specific risk be diversified away by investing in both Bangsaphan Barmill and CSP Steel 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 CSP Steel 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 CSP Steel Center, you can compare the effects of market volatilities on Bangsaphan Barmill and CSP Steel 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 CSP Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangsaphan Barmill and CSP Steel.
Diversification Opportunities for Bangsaphan Barmill and CSP Steel
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bangsaphan and CSP is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bangsaphan Barmill Public and CSP Steel Center in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSP Steel Center 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 CSP Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSP Steel Center has no effect on the direction of Bangsaphan Barmill i.e., Bangsaphan Barmill and CSP Steel go up and down completely randomly.
Pair Corralation between Bangsaphan Barmill and CSP Steel
Assuming the 90 days trading horizon Bangsaphan Barmill Public is expected to generate 1.0 times more return on investment than CSP Steel. However, Bangsaphan Barmill Public is 1.0 times less risky than CSP Steel. It trades about 0.04 of its potential returns per unit of risk. CSP Steel Center is currently generating about 0.04 per unit of risk. If you would invest 96.00 in Bangsaphan Barmill Public on October 13, 2024 and sell it today you would lose (25.00) from holding Bangsaphan Barmill Public or give up 26.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Bangsaphan Barmill Public vs. CSP Steel Center
Performance |
| Timeline |
| Bangsaphan Barmill Public |
| CSP Steel Center |
Bangsaphan Barmill and CSP Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangsaphan Barmill and CSP Steel
The main advantage of trading using opposite Bangsaphan Barmill and CSP Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangsaphan Barmill position performs unexpectedly, CSP Steel 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 CSP Steel will offset losses from the drop in CSP Steel'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 |
| CSP Steel vs. Asia Metal Public | CSP Steel vs. 2S Metal Public | CSP Steel vs. Bangsaphan Barmill Public | CSP Steel vs. Agripure Holdings 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Stocks Directory Find actively traded stocks across global markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |