Correlation Between Capital Engineering and Bangsaphan Barmill
Can any of the company-specific risk be diversified away by investing in both Capital Engineering 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 Capital Engineering and Bangsaphan Barmill 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 Bangsaphan Barmill Public, you can compare the effects of market volatilities on Capital Engineering 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 Capital Engineering with a short position of Bangsaphan Barmill. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capital Engineering and Bangsaphan Barmill.
Diversification Opportunities for Capital Engineering and Bangsaphan Barmill
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Capital and Bangsaphan is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Capital Engineering Network 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 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 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 Capital Engineering i.e., Capital Engineering and Bangsaphan Barmill go up and down completely randomly.
Pair Corralation between Capital Engineering and Bangsaphan Barmill
Assuming the 90 days trading horizon Capital Engineering Network is expected to under-perform the Bangsaphan Barmill. But the stock apears to be less risky and, when comparing its historical volatility, Capital Engineering Network is 3.99 times less risky than Bangsaphan Barmill. The stock trades about -0.38 of its potential returns per unit of risk. The Bangsaphan Barmill Public is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 72.00 in Bangsaphan Barmill Public on October 26, 2024 and sell it today you would lose (2.00) from holding Bangsaphan Barmill Public or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capital Engineering Network vs. Bangsaphan Barmill Public
Performance |
| Timeline |
| Capital Engineering |
| Bangsaphan Barmill Public |
Capital Engineering and Bangsaphan Barmill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capital Engineering and Bangsaphan Barmill
The main advantage of trading using opposite Capital Engineering and Bangsaphan Barmill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capital Engineering 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.| Capital Engineering vs. Christiani Nielsen Public | Capital Engineering vs. Country Group Holdings | Capital Engineering vs. BJC Heavy Industries | Capital Engineering vs. Chukai Public |
| 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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