Correlation Between CPR Gomu and Bangkok Sheet
Can any of the company-specific risk be diversified away by investing in both CPR Gomu and Bangkok Sheet 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 CPR Gomu and Bangkok Sheet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CPR Gomu Industrial and Bangkok Sheet Metal, you can compare the effects of market volatilities on CPR Gomu and Bangkok Sheet 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 CPR Gomu with a short position of Bangkok Sheet. Check out your portfolio center. Please also check ongoing floating volatility patterns of CPR Gomu and Bangkok Sheet.
Diversification Opportunities for CPR Gomu and Bangkok Sheet
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between CPR and Bangkok is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding CPR Gomu Industrial and Bangkok Sheet Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Sheet Metal and CPR Gomu 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 CPR Gomu Industrial are associated (or correlated) with Bangkok Sheet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Sheet Metal has no effect on the direction of CPR Gomu i.e., CPR Gomu and Bangkok Sheet go up and down completely randomly.
Pair Corralation between CPR Gomu and Bangkok Sheet
Assuming the 90 days trading horizon CPR Gomu is expected to generate 94.04 times less return on investment than Bangkok Sheet. But when comparing it to its historical volatility, CPR Gomu Industrial is 30.22 times less risky than Bangkok Sheet. It trades about 0.03 of its potential returns per unit of risk. Bangkok Sheet Metal is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 270.00 in Bangkok Sheet Metal on September 19, 2024 and sell it today you would earn a total of 40.00 from holding Bangkok Sheet Metal or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CPR Gomu Industrial vs. Bangkok Sheet Metal
Performance |
| Timeline |
| CPR Gomu Industrial |
| Bangkok Sheet Metal |
CPR Gomu and Bangkok Sheet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CPR Gomu and Bangkok Sheet
The main advantage of trading using opposite CPR Gomu and Bangkok Sheet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CPR Gomu position performs unexpectedly, Bangkok Sheet 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 Bangkok Sheet will offset losses from the drop in Bangkok Sheet's long position.| CPR Gomu vs. Thoresen Thai Agencies | CPR Gomu vs. Sri Trang Agro Industry | CPR Gomu vs. TPI Polene Public | CPR Gomu vs. Ratchthani Leasing Public |
| Bangkok Sheet vs. Chewathai Public | Bangkok Sheet vs. AIRA Factoring Public | Bangkok Sheet vs. Cho Thavee Public | Bangkok Sheet vs. G Capital Public |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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