Correlation Between Chonburi Concrete and Bangsaphan Barmill
Can any of the company-specific risk be diversified away by investing in both Chonburi Concrete and Bangsaphan Barmill 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 Chonburi Concrete and Bangsaphan Barmill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chonburi Concrete Product and Bangsaphan Barmill Public, you can compare the effects of market volatilities on Chonburi Concrete and Bangsaphan Barmill 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 Chonburi Concrete with a short position of Bangsaphan Barmill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chonburi Concrete and Bangsaphan Barmill.
Diversification Opportunities for Chonburi Concrete and Bangsaphan Barmill
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chonburi and Bangsaphan is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Chonburi Concrete Product and Bangsaphan Barmill Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangsaphan Barmill Public and Chonburi Concrete 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 Chonburi Concrete Product are associated (or correlated) with Bangsaphan Barmill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangsaphan Barmill Public has no effect on the direction of Chonburi Concrete i.e., Chonburi Concrete and Bangsaphan Barmill go up and down completely randomly.
Pair Corralation between Chonburi Concrete and Bangsaphan Barmill
Assuming the 90 days trading horizon Chonburi Concrete is expected to generate 1.01 times less return on investment than Bangsaphan Barmill. In addition to that, Chonburi Concrete is 1.0 times more volatile than Bangsaphan Barmill Public. It trades about 0.05 of its total potential returns per unit of risk. Bangsaphan Barmill Public is currently generating about 0.05 per unit of volatility. If you would invest 68.00 in Bangsaphan Barmill Public on September 12, 2024 and sell it today you would earn a total of 2.00 from holding Bangsaphan Barmill Public or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chonburi Concrete Product vs. Bangsaphan Barmill Public
Performance |
| Timeline |
| Chonburi Concrete Product |
| Bangsaphan Barmill Public |
Chonburi Concrete and Bangsaphan Barmill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chonburi Concrete and Bangsaphan Barmill
The main advantage of trading using opposite Chonburi Concrete and Bangsaphan Barmill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chonburi Concrete position performs unexpectedly, Bangsaphan Barmill 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 Bangsaphan Barmill will offset losses from the drop in Bangsaphan Barmill's long position.| Chonburi Concrete vs. Thantawan Industry Public | Chonburi Concrete vs. The Erawan Group | Chonburi Concrete vs. Jay Mart Public | Chonburi Concrete vs. Airports of Thailand |
| Bangsaphan Barmill vs. Asia Metal Public | Bangsaphan Barmill vs. Chonburi Concrete Product | Bangsaphan Barmill vs. Asia Plus Group | Bangsaphan Barmill vs. CSP Steel Center |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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