Correlation Between GMM Grammy and Bangkok Life
Can any of the company-specific risk be diversified away by investing in both GMM Grammy 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 GMM Grammy and Bangkok Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GMM Grammy Public and Bangkok Life Assurance, you can compare the effects of market volatilities on GMM Grammy 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 GMM Grammy with a short position of Bangkok Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of GMM Grammy and Bangkok Life.
Diversification Opportunities for GMM Grammy and Bangkok Life
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GMM and Bangkok is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GMM Grammy Public 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 GMM Grammy 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 GMM Grammy Public 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 GMM Grammy i.e., GMM Grammy and Bangkok Life go up and down completely randomly.
Pair Corralation between GMM Grammy and Bangkok Life
If you would invest 0.00 in GMM Grammy Public on September 1, 2024 and sell it today you would earn a total of 0.00 from holding GMM Grammy Public or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.27% |
| Values | Daily Returns |
GMM Grammy Public vs. Bangkok Life Assurance
Performance |
| Timeline |
| GMM Grammy Public |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
| Bangkok Life Assurance |
GMM Grammy and Bangkok Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GMM Grammy and Bangkok Life
The main advantage of trading using opposite GMM Grammy and Bangkok Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GMM Grammy 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.| GMM Grammy vs. Healthlead Public | GMM Grammy vs. Ramkhamhaeng Hospital Public | GMM Grammy vs. AddTech Hub Public | GMM Grammy vs. Praram 9 Hospital |
| Bangkok Life vs. Bangkok Bank Public | Bangkok Life vs. Indorama Ventures PCL | Bangkok Life vs. Bumrungrad Hospital Public | Bangkok Life vs. Bangkok Dusit Medical |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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