Correlation Between Empire State and Bangkok Life
Can any of the company-specific risk be diversified away by investing in both Empire State and Bangkok Life 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 Empire State and Bangkok Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Empire State Realty and Bangkok Life Assurance, you can compare the effects of market volatilities on Empire State and Bangkok Life 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 Empire State with a short position of Bangkok Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Empire State and Bangkok Life.
Diversification Opportunities for Empire State and Bangkok Life
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Empire and Bangkok is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Empire State Realty and Bangkok Life Assurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Life Assurance and Empire State 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 Empire State Realty are associated (or correlated) with Bangkok Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Life Assurance has no effect on the direction of Empire State i.e., Empire State and Bangkok Life go up and down completely randomly.
Pair Corralation between Empire State and Bangkok Life
Given the investment horizon of 90 days Empire State Realty is expected to generate 1.04 times more return on investment than Bangkok Life. However, Empire State is 1.04 times more volatile than Bangkok Life Assurance. It trades about 0.06 of its potential returns per unit of risk. Bangkok Life Assurance is currently generating about -0.02 per unit of risk. If you would invest 657.00 in Empire State Realty on August 29, 2024 and sell it today you would earn a total of 451.00 from holding Empire State Realty or generate 68.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.18% |
| Values | Daily Returns |
Empire State Realty vs. Bangkok Life Assurance
Performance |
| Timeline |
| Empire State Realty |
| Bangkok Life Assurance |
Empire State and Bangkok Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Empire State and Bangkok Life
The main advantage of trading using opposite Empire State and Bangkok Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Empire State position performs unexpectedly, Bangkok Life 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 Life will offset losses from the drop in Bangkok Life's long position.| Empire State vs. Paramount Group | Empire State vs. Hudson Pacific Properties | Empire State vs. Equity Commonwealth | Empire State vs. Douglas Emmett |
| Bangkok Life vs. Karmarts Public | Bangkok Life vs. Kang Yong Electric | Bangkok Life vs. Kiatnakin Phatra Bank | Bangkok Life vs. SCG PACKAGING PCL NVDR |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |