Correlation Between BTS Group and Plan B
Can any of the company-specific risk be diversified away by investing in both BTS Group and Plan B 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 Plan B 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 Plan B Media, you can compare the effects of market volatilities on BTS Group and Plan B 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 Plan B. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTS Group and Plan B.
Diversification Opportunities for BTS Group and Plan B
Significant diversification
The 3 months correlation between BTS and Plan is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group Holdings and Plan B Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plan B Media 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 Plan B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plan B Media has no effect on the direction of BTS Group i.e., BTS Group and Plan B go up and down completely randomly.
Pair Corralation between BTS Group and Plan B
Assuming the 90 days trading horizon BTS Group is expected to generate 197.47 times less return on investment than Plan B. But when comparing it to its historical volatility, BTS Group Holdings is 29.81 times less risky than Plan B. It trades about 0.01 of its potential returns per unit of risk. Plan B Media is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 915.00 in Plan B Media on August 25, 2024 and sell it today you would lose (200.00) from holding Plan B Media or give up 21.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTS Group Holdings vs. Plan B Media
Performance |
| Timeline |
| BTS Group Holdings |
| Plan B Media |
BTS Group and Plan B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTS Group and Plan B
The main advantage of trading using opposite BTS Group and Plan B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTS Group position performs unexpectedly, Plan B 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 Plan B will offset losses from the drop in Plan B'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 |
| Plan B vs. VGI Public | Plan B vs. Minor International Public | Plan B vs. BTS Group Holdings | Plan B vs. Bangkok Dusit Medical |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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