Correlation Between BTS Group and VGI Public
Can any of the company-specific risk be diversified away by investing in both BTS Group and VGI 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 VGI 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 VGI Public, you can compare the effects of market volatilities on BTS Group and VGI 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 VGI Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTS Group and VGI Public.
Diversification Opportunities for BTS Group and VGI Public
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BTS and VGI is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding BTS Group Holdings and VGI Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VGI 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 VGI Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VGI Public has no effect on the direction of BTS Group i.e., BTS Group and VGI Public go up and down completely randomly.
Pair Corralation between BTS Group and VGI Public
Assuming the 90 days trading horizon BTS Group Holdings is expected to generate 0.44 times more return on investment than VGI Public. However, BTS Group Holdings is 2.3 times less risky than VGI Public. It trades about 0.18 of its potential returns per unit of risk. VGI Public is currently generating about -0.01 per unit of risk. If you would invest 466.00 in BTS Group Holdings on August 26, 2024 and sell it today you would earn a total of 32.00 from holding BTS Group Holdings or generate 6.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTS Group Holdings vs. VGI Public
Performance |
| Timeline |
| BTS Group Holdings |
| VGI Public |
BTS Group and VGI Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTS Group and VGI Public
The main advantage of trading using opposite BTS Group and VGI Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTS Group position performs unexpectedly, VGI 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 VGI Public will offset losses from the drop in VGI Public's long position.| BTS Group vs. Tata Steel Public | BTS Group vs. Thaifoods Group Public | BTS Group vs. TMT Steel Public | BTS Group vs. The Erawan Group |
| VGI Public vs. BTS Group Holdings | VGI Public vs. WHA Public | VGI Public vs. Plan B Media | VGI Public vs. Gulf Energy Development |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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