Correlation Between Bangkok Union and I2 Enterprise
Can any of the company-specific risk be diversified away by investing in both Bangkok Union and I2 Enterprise 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 Bangkok Union and I2 Enterprise into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bangkok Union Insurance and I2 Enterprise Public, you can compare the effects of market volatilities on Bangkok Union and I2 Enterprise 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 Bangkok Union with a short position of I2 Enterprise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bangkok Union and I2 Enterprise.
Diversification Opportunities for Bangkok Union and I2 Enterprise
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bangkok and I2 Enterprise is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bangkok Union Insurance and I2 Enterprise Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on I2 Enterprise Public and Bangkok Union 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 Bangkok Union Insurance are associated (or correlated) with I2 Enterprise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of I2 Enterprise Public has no effect on the direction of Bangkok Union i.e., Bangkok Union and I2 Enterprise go up and down completely randomly.
Pair Corralation between Bangkok Union and I2 Enterprise
Assuming the 90 days trading horizon Bangkok Union Insurance is expected to generate 16.22 times more return on investment than I2 Enterprise. However, Bangkok Union is 16.22 times more volatile than I2 Enterprise Public. It trades about 0.04 of its potential returns per unit of risk. I2 Enterprise Public is currently generating about -0.04 per unit of risk. If you would invest 1,216 in Bangkok Union Insurance on October 13, 2024 and sell it today you would earn a total of 394.00 from holding Bangkok Union Insurance or generate 32.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.77% |
| Values | Daily Returns |
Bangkok Union Insurance vs. I2 Enterprise Public
Performance |
| Timeline |
| Bangkok Union Insurance |
| I2 Enterprise Public |
Bangkok Union and I2 Enterprise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bangkok Union and I2 Enterprise
The main advantage of trading using opposite Bangkok Union and I2 Enterprise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bangkok Union position performs unexpectedly, I2 Enterprise 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 I2 Enterprise will offset losses from the drop in I2 Enterprise's long position.| Bangkok Union vs. Allianz Ayudhya Capital | Bangkok Union vs. Boutique Newcity Public | Bangkok Union vs. AJ Plast Public | Bangkok Union vs. Asia Fiber Public |
| I2 Enterprise vs. Bangkok Union Insurance | I2 Enterprise vs. Indara Insurance Public | I2 Enterprise vs. Nonthavej Hospital Public | I2 Enterprise vs. City Sports and |
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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