Correlation Between Bangsaphan Barmill and TMT Steel
Can any of the company-specific risk be diversified away by investing in both Bangsaphan Barmill and TMT 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 TMT 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 TMT Steel Public, you can compare the effects of market volatilities on Bangsaphan Barmill and TMT 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 TMT Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangsaphan Barmill and TMT Steel.
Diversification Opportunities for Bangsaphan Barmill and TMT Steel
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Bangsaphan and TMT is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bangsaphan Barmill Public and TMT Steel Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TMT Steel 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 TMT Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TMT Steel Public has no effect on the direction of Bangsaphan Barmill i.e., Bangsaphan Barmill and TMT Steel go up and down completely randomly.
Pair Corralation between Bangsaphan Barmill and TMT Steel
Assuming the 90 days trading horizon Bangsaphan Barmill Public is expected to generate 1.11 times more return on investment than TMT Steel. However, Bangsaphan Barmill is 1.11 times more volatile than TMT Steel Public. It trades about -0.07 of its potential returns per unit of risk. TMT Steel Public is currently generating about -0.48 per unit of risk. If you would invest 76.00 in Bangsaphan Barmill Public on August 29, 2024 and sell it today you would lose (4.00) from holding Bangsaphan Barmill Public or give up 5.26% 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. TMT Steel Public
Performance |
| Timeline |
| Bangsaphan Barmill Public |
| TMT Steel Public |
Bangsaphan Barmill and TMT Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangsaphan Barmill and TMT Steel
The main advantage of trading using opposite Bangsaphan Barmill and TMT Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangsaphan Barmill position performs unexpectedly, TMT 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 TMT Steel will offset losses from the drop in TMT Steel's long position.| Bangsaphan Barmill vs. 2S Metal Public | Bangsaphan Barmill vs. AAPICO Hitech Public | Bangsaphan Barmill vs. AJ Plast Public |
| TMT Steel vs. 2S Metal Public | TMT Steel vs. AAPICO Hitech Public | TMT Steel vs. Bangsaphan Barmill Public | TMT Steel vs. AJ Plast 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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