Correlation Between BTS Group and Asphere Innovations
Can any of the company-specific risk be diversified away by investing in both BTS Group and Asphere Innovations 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 BTS Group and Asphere Innovations into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTS Group Holdings and Asphere Innovations Public, you can compare the effects of market volatilities on BTS Group and Asphere Innovations 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 BTS Group with a short position of Asphere Innovations. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTS Group and Asphere Innovations.
Diversification Opportunities for BTS Group and Asphere Innovations
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BTS and Asphere is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group Holdings and Asphere Innovations Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asphere Innovations and BTS Group 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 BTS Group Holdings are associated (or correlated) with Asphere Innovations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asphere Innovations has no effect on the direction of BTS Group i.e., BTS Group and Asphere Innovations go up and down completely randomly.
Pair Corralation between BTS Group and Asphere Innovations
Assuming the 90 days trading horizon BTS Group Holdings is expected to generate 0.56 times more return on investment than Asphere Innovations. However, BTS Group Holdings is 1.79 times less risky than Asphere Innovations. It trades about 0.04 of its potential returns per unit of risk. Asphere Innovations Public is currently generating about -0.23 per unit of risk. If you would invest 605.00 in BTS Group Holdings on November 4, 2024 and sell it today you would earn a total of 10.00 from holding BTS Group Holdings or generate 1.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTS Group Holdings vs. Asphere Innovations Public
Performance |
| Timeline |
| BTS Group Holdings |
| Asphere Innovations |
BTS Group and Asphere Innovations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTS Group and Asphere Innovations
The main advantage of trading using opposite BTS Group and Asphere Innovations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTS Group position performs unexpectedly, Asphere Innovations 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 Asphere Innovations will offset losses from the drop in Asphere Innovations' long position.| BTS Group vs. Bangkok Expressway and | BTS Group vs. CP ALL Public | BTS Group vs. Airports of Thailand | BTS Group vs. Bangkok Dusit Medical |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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