Correlation Between BTS Group and After You
Can any of the company-specific risk be diversified away by investing in both BTS Group and After You 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 After You 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 After You Public, you can compare the effects of market volatilities on BTS Group and After You 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 After You. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTS Group and After You.
Diversification Opportunities for BTS Group and After You
Very weak diversification
The 3 months correlation between BTS and After is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group Holdings and After You Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on After You Public 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 After You. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of After You Public has no effect on the direction of BTS Group i.e., BTS Group and After You go up and down completely randomly.
Pair Corralation between BTS Group and After You
Assuming the 90 days trading horizon BTS Group Holdings is expected to under-perform the After You. But the stock apears to be less risky and, when comparing its historical volatility, BTS Group Holdings is 24.28 times less risky than After You. The stock trades about -0.04 of its potential returns per unit of risk. The After You Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,065 in After You Public on August 26, 2024 and sell it today you would earn a total of 35.00 from holding After You Public or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTS Group Holdings vs. After You Public
Performance |
| Timeline |
| BTS Group Holdings |
| After You Public |
BTS Group and After You Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTS Group and After You
The main advantage of trading using opposite BTS Group and After You positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTS Group position performs unexpectedly, After You 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 After You will offset losses from the drop in After You's 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 |
| After You vs. CP ALL Public | After You vs. BTS Group Holdings | After You vs. Minor International Public | After You vs. Airports of Thailand |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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