Correlation Between BTS Group and Bangkok Expressway
Can any of the company-specific risk be diversified away by investing in both BTS Group and Bangkok Expressway 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 Bangkok Expressway 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 Bangkok Expressway and, you can compare the effects of market volatilities on BTS Group and Bangkok Expressway 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 Bangkok Expressway. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTS Group and Bangkok Expressway.
Diversification Opportunities for BTS Group and Bangkok Expressway
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BTS and Bangkok is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group Holdings and Bangkok Expressway and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Expressway and 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 Bangkok Expressway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Expressway and has no effect on the direction of BTS Group i.e., BTS Group and Bangkok Expressway go up and down completely randomly.
Pair Corralation between BTS Group and Bangkok Expressway
Assuming the 90 days trading horizon BTS Group Holdings is expected to generate 1.68 times more return on investment than Bangkok Expressway. However, BTS Group is 1.68 times more volatile than Bangkok Expressway and. It trades about -0.02 of its potential returns per unit of risk. Bangkok Expressway and is currently generating about -0.03 per unit of risk. If you would invest 710.00 in BTS Group Holdings on September 12, 2024 and sell it today you would lose (140.00) from holding BTS Group Holdings or give up 19.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTS Group Holdings vs. Bangkok Expressway and
Performance |
| Timeline |
| BTS Group Holdings |
| Bangkok Expressway and |
BTS Group and Bangkok Expressway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTS Group and Bangkok Expressway
The main advantage of trading using opposite BTS Group and Bangkok Expressway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTS Group position performs unexpectedly, Bangkok Expressway 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 Bangkok Expressway will offset losses from the drop in Bangkok Expressway'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 |
| Bangkok Expressway vs. CP ALL Public | Bangkok Expressway vs. Airports of Thailand | Bangkok Expressway vs. Central Pattana 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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