Correlation Between Global Power and BCPG Public
Can any of the company-specific risk be diversified away by investing in both Global Power and BCPG Public 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 Global Power and BCPG Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Power Synergy and BCPG Public, you can compare the effects of market volatilities on Global Power and BCPG Public 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 Global Power with a short position of BCPG Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Power and BCPG Public.
Diversification Opportunities for Global Power and BCPG Public
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and BCPG is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Global Power Synergy and BCPG Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCPG Public and Global Power 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 Global Power Synergy are associated (or correlated) with BCPG Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCPG Public has no effect on the direction of Global Power i.e., Global Power and BCPG Public go up and down completely randomly.
Pair Corralation between Global Power and BCPG Public
Assuming the 90 days trading horizon Global Power Synergy is expected to under-perform the BCPG Public. But the stock apears to be less risky and, when comparing its historical volatility, Global Power Synergy is 1.22 times less risky than BCPG Public. The stock trades about -0.11 of its potential returns per unit of risk. The BCPG Public is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 625.00 in BCPG Public on November 2, 2024 and sell it today you would earn a total of 35.00 from holding BCPG Public or generate 5.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Power Synergy vs. BCPG Public
Performance |
| Timeline |
| Global Power Synergy |
| BCPG Public |
Global Power and BCPG Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Power and BCPG Public
The main advantage of trading using opposite Global Power and BCPG Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Power position performs unexpectedly, BCPG Public 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 BCPG Public will offset losses from the drop in BCPG Public's long position.| Global Power vs. Gulf Energy Development | Global Power vs. Energy Absolute Public | Global Power vs. BGrimm Power Public | Global Power vs. CP ALL Public |
| BCPG Public vs. Bangchak Public | BCPG Public vs. Gulf Energy Development | BCPG Public vs. Global Power Synergy | BCPG Public vs. Bangkok Expressway and |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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