Correlation Between Capital Engineering and BJC Heavy
Can any of the company-specific risk be diversified away by investing in both Capital Engineering and BJC Heavy 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 Capital Engineering and BJC Heavy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capital Engineering Network and BJC Heavy Industries, you can compare the effects of market volatilities on Capital Engineering and BJC Heavy 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 Capital Engineering with a short position of BJC Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Engineering and BJC Heavy.
Diversification Opportunities for Capital Engineering and BJC Heavy
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Capital and BJC is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Capital Engineering Network and BJC Heavy Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJC Heavy Industries and Capital Engineering 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 Capital Engineering Network are associated (or correlated) with BJC Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJC Heavy Industries has no effect on the direction of Capital Engineering i.e., Capital Engineering and BJC Heavy go up and down completely randomly.
Pair Corralation between Capital Engineering and BJC Heavy
Assuming the 90 days trading horizon Capital Engineering is expected to generate 1.01 times less return on investment than BJC Heavy. In addition to that, Capital Engineering is 1.0 times more volatile than BJC Heavy Industries. It trades about 0.04 of its total potential returns per unit of risk. BJC Heavy Industries is currently generating about 0.04 per unit of volatility. If you would invest 153.00 in BJC Heavy Industries on September 3, 2024 and sell it today you would lose (31.00) from holding BJC Heavy Industries or give up 20.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Engineering Network vs. BJC Heavy Industries
Performance |
| Timeline |
| Capital Engineering |
| BJC Heavy Industries |
Capital Engineering and BJC Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Engineering and BJC Heavy
The main advantage of trading using opposite Capital Engineering and BJC Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Engineering position performs unexpectedly, BJC Heavy 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 BJC Heavy will offset losses from the drop in BJC Heavy's long position.| Capital Engineering vs. PTT Public | Capital Engineering vs. PTT Exploration and | Capital Engineering vs. The Siam Cement | Capital Engineering vs. CP ALL Public |
| BJC Heavy vs. Asia Aviation Public | BJC Heavy vs. Bangkok Dusit Medical | BJC Heavy vs. Bangkok Expressway and | BJC Heavy vs. Airports of Thailand |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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