Correlation Between Dupont De and Bangkok Airways
Can any of the company-specific risk be diversified away by investing in both Dupont De and Bangkok Airways 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 Dupont De and Bangkok Airways into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dupont De Nemours and Bangkok Airways Public, you can compare the effects of market volatilities on Dupont De and Bangkok Airways 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 Dupont De with a short position of Bangkok Airways. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dupont De and Bangkok Airways.
Diversification Opportunities for Dupont De and Bangkok Airways
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dupont and Bangkok is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Dupont De Nemours and Bangkok Airways Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Airways Public and Dupont De 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 Dupont De Nemours are associated (or correlated) with Bangkok Airways. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Airways Public has no effect on the direction of Dupont De i.e., Dupont De and Bangkok Airways go up and down completely randomly.
Pair Corralation between Dupont De and Bangkok Airways
Allowing for the 90-day total investment horizon Dupont De is expected to generate 2.49 times less return on investment than Bangkok Airways. But when comparing it to its historical volatility, Dupont De Nemours is 1.63 times less risky than Bangkok Airways. It trades about 0.03 of its potential returns per unit of risk. Bangkok Airways Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 2,111 in Bangkok Airways Public on September 2, 2024 and sell it today you would earn a total of 239.00 from holding Bangkok Airways Public or generate 11.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Dupont De Nemours vs. Bangkok Airways Public
Performance |
| Timeline |
| Dupont De Nemours |
| Bangkok Airways Public |
Dupont De and Bangkok Airways Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dupont De and Bangkok Airways
The main advantage of trading using opposite Dupont De and Bangkok Airways positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dupont De position performs unexpectedly, Bangkok Airways 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 Airways will offset losses from the drop in Bangkok Airways' long position.| Dupont De vs. Eastman Chemical | Dupont De vs. Olin Corporation | Dupont De vs. Cabot | Dupont De vs. Kronos Worldwide |
| Bangkok Airways vs. Asia Aviation Public | Bangkok Airways vs. Bangkok Dusit Medical | Bangkok Airways vs. Bangkok Expressway and | Bangkok Airways 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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