Correlation Between Dow Jones and Bangkok Land
Can any of the company-specific risk be diversified away by investing in both Dow Jones and Bangkok Land 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 Dow Jones and Bangkok Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dow Jones Industrial and Bangkok Land Public, you can compare the effects of market volatilities on Dow Jones and Bangkok Land 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 Dow Jones with a short position of Bangkok Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dow Jones and Bangkok Land.
Diversification Opportunities for Dow Jones and Bangkok Land
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dow and Bangkok is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Dow Jones Industrial and Bangkok Land Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Land Public and Dow Jones 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 Dow Jones Industrial are associated (or correlated) with Bangkok Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Land Public has no effect on the direction of Dow Jones i.e., Dow Jones and Bangkok Land go up and down completely randomly.
Pair Corralation between Dow Jones and Bangkok Land
Assuming the 90 days trading horizon Dow Jones Industrial is expected to generate 0.38 times more return on investment than Bangkok Land. However, Dow Jones Industrial is 2.66 times less risky than Bangkok Land. It trades about 0.33 of its potential returns per unit of risk. Bangkok Land Public is currently generating about -0.12 per unit of risk. If you would invest 4,239,227 in Dow Jones Industrial on November 3, 2024 and sell it today you would earn a total of 215,239 from holding Dow Jones Industrial or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.3% |
| Values | Daily Returns |
Dow Jones Industrial vs. Bangkok Land Public
Performance |
| Timeline |
Dow Jones and Bangkok Land Volatility Contrast
Predicted Return Density |
| Returns |
Dow Jones Industrial
Pair trading matchups for Dow Jones
Bangkok Land Public
Pair trading matchups for Bangkok Land
Pair Trading with Dow Jones and Bangkok Land
The main advantage of trading using opposite Dow Jones and Bangkok Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dow Jones position performs unexpectedly, Bangkok Land 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 Land will offset losses from the drop in Bangkok Land's long position.| Dow Jones vs. Rambler Metals and | Dow Jones vs. Nicola Mining | Dow Jones vs. Old Dominion Freight | Dow Jones vs. United Guardian |
| Bangkok Land vs. Siri Prime Office | Bangkok Land vs. BTS Group Holdings | Bangkok Land vs. Quality Houses Public | Bangkok Land vs. Land and Houses |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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