Correlation Between Gentex and Banpu PCL
Can any of the company-specific risk be diversified away by investing in both Gentex and Banpu PCL 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 Gentex and Banpu PCL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gentex and Banpu PCL ADR, you can compare the effects of market volatilities on Gentex and Banpu PCL 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 Gentex with a short position of Banpu PCL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gentex and Banpu PCL.
Diversification Opportunities for Gentex and Banpu PCL
Weak diversification
The 3 months correlation between Gentex and Banpu is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Gentex and Banpu PCL ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banpu PCL ADR and Gentex 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 Gentex are associated (or correlated) with Banpu PCL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banpu PCL ADR has no effect on the direction of Gentex i.e., Gentex and Banpu PCL go up and down completely randomly.
Pair Corralation between Gentex and Banpu PCL
If you would invest 197.00 in Banpu PCL ADR on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Banpu PCL ADR or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Gentex vs. Banpu PCL ADR
Performance |
| Timeline |
| Gentex |
| Banpu PCL ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gentex and Banpu PCL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gentex and Banpu PCL
The main advantage of trading using opposite Gentex and Banpu PCL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gentex position performs unexpectedly, Banpu PCL 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 Banpu PCL will offset losses from the drop in Banpu PCL's long position.The idea behind Gentex and Banpu PCL ADR pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Banpu PCL vs. Avient Corp | Banpu PCL vs. SNDL Inc | Banpu PCL vs. NH Foods Ltd | Banpu PCL vs. Consol Energy |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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