Correlation Between BTS Group and SPCG Public
Can any of the company-specific risk be diversified away by investing in both BTS Group and SPCG Public 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 SPCG Public 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 SPCG Public, you can compare the effects of market volatilities on BTS Group and SPCG Public 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 SPCG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTS Group and SPCG Public.
Diversification Opportunities for BTS Group and SPCG Public
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BTS and SPCG is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group Holdings and SPCG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPCG 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 SPCG Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPCG Public has no effect on the direction of BTS Group i.e., BTS Group and SPCG Public go up and down completely randomly.
Pair Corralation between BTS Group and SPCG Public
Assuming the 90 days trading horizon BTS Group Holdings is expected to generate 1.43 times more return on investment than SPCG Public. However, BTS Group is 1.43 times more volatile than SPCG Public. It trades about 0.08 of its potential returns per unit of risk. SPCG Public is currently generating about -0.02 per unit of risk. If you would invest 460.00 in BTS Group Holdings on September 1, 2024 and sell it today you would earn a total of 95.00 from holding BTS Group Holdings or generate 20.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
BTS Group Holdings vs. SPCG Public
Performance |
| Timeline |
| BTS Group Holdings |
| SPCG Public |
BTS Group and SPCG Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTS Group and SPCG Public
The main advantage of trading using opposite BTS Group and SPCG Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTS Group position performs unexpectedly, SPCG Public 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 SPCG Public will offset losses from the drop in SPCG Public'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 |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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