Correlation Between CSP Steel and Bangsaphan Barmill
Can any of the company-specific risk be diversified away by investing in both CSP Steel 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 CSP Steel and Bangsaphan Barmill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSP Steel Center and Bangsaphan Barmill Public, you can compare the effects of market volatilities on CSP Steel 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 CSP Steel with a short position of Bangsaphan Barmill. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSP Steel and Bangsaphan Barmill.
Diversification Opportunities for CSP Steel and Bangsaphan Barmill
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between CSP and Bangsaphan is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding CSP Steel Center 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 CSP Steel 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 CSP Steel Center 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 CSP Steel i.e., CSP Steel and Bangsaphan Barmill go up and down completely randomly.
Pair Corralation between CSP Steel and Bangsaphan Barmill
Assuming the 90 days trading horizon CSP Steel is expected to generate 1.05 times less return on investment than Bangsaphan Barmill. In addition to that, CSP Steel 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSP Steel Center vs. Bangsaphan Barmill Public
Performance |
| Timeline |
| CSP Steel Center |
| Bangsaphan Barmill Public |
CSP Steel and Bangsaphan Barmill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSP Steel and Bangsaphan Barmill
The main advantage of trading using opposite CSP Steel and Bangsaphan Barmill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSP Steel 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.| CSP Steel vs. Thantawan Industry Public | CSP Steel vs. The Erawan Group | CSP Steel vs. Jay Mart Public | CSP Steel 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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