Correlation Between G Capital and Bangkok Sheet
Can any of the company-specific risk be diversified away by investing in both G Capital 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 G Capital and Bangkok Sheet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Capital Public and Bangkok Sheet Metal, you can compare the effects of market volatilities on G Capital 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 G Capital with a short position of Bangkok Sheet. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Capital and Bangkok Sheet.
Diversification Opportunities for G Capital and Bangkok Sheet
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GCAP and Bangkok is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding G Capital Public 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 G Capital 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 G Capital Public 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 G Capital i.e., G Capital and Bangkok Sheet go up and down completely randomly.
Pair Corralation between G Capital and Bangkok Sheet
Assuming the 90 days trading horizon G Capital is expected to generate 1.1 times less return on investment than Bangkok Sheet. In addition to that, G Capital is 1.0 times more volatile than Bangkok Sheet Metal. It trades about 0.04 of its total potential returns per unit of risk. Bangkok Sheet Metal is currently generating about 0.04 per unit of volatility. If you would invest 428.00 in Bangkok Sheet Metal on September 13, 2024 and sell it today you would lose (122.00) from holding Bangkok Sheet Metal or give up 28.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
G Capital Public vs. Bangkok Sheet Metal
Performance |
| Timeline |
| G Capital Public |
| Bangkok Sheet Metal |
G Capital and Bangkok Sheet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Capital and Bangkok Sheet
The main advantage of trading using opposite G Capital and Bangkok Sheet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Capital 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.| G Capital vs. East Coast Furnitech | G Capital vs. Filter Vision Public | G Capital vs. Cho Thavee Public | G Capital vs. Akkhie Prakarn 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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