Correlation Between Lalin Property and Bangchak Public
Can any of the company-specific risk be diversified away by investing in both Lalin Property and Bangchak 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 Lalin Property and Bangchak Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lalin Property Public and Bangchak Public, you can compare the effects of market volatilities on Lalin Property and Bangchak 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 Lalin Property with a short position of Bangchak Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lalin Property and Bangchak Public.
Diversification Opportunities for Lalin Property and Bangchak Public
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lalin and Bangchak is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lalin Property Public and Bangchak Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangchak Public and Lalin Property 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 Lalin Property Public are associated (or correlated) with Bangchak Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangchak Public has no effect on the direction of Lalin Property i.e., Lalin Property and Bangchak Public go up and down completely randomly.
Pair Corralation between Lalin Property and Bangchak Public
Assuming the 90 days trading horizon Lalin Property Public is expected to under-perform the Bangchak Public. But the stock apears to be less risky and, when comparing its historical volatility, Lalin Property Public is 2.42 times less risky than Bangchak Public. The stock trades about -0.35 of its potential returns per unit of risk. The Bangchak Public is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,550 in Bangchak Public on November 28, 2024 and sell it today you would earn a total of 225.00 from holding Bangchak Public or generate 6.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lalin Property Public vs. Bangchak Public
Performance |
| Timeline |
| Lalin Property Public |
| Bangchak Public |
Lalin Property and Bangchak Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lalin Property and Bangchak Public
The main advantage of trading using opposite Lalin Property and Bangchak Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lalin Property position performs unexpectedly, Bangchak 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 Bangchak Public will offset losses from the drop in Bangchak Public's long position.| Lalin Property vs. AP Public | Lalin Property vs. Land and Houses | Lalin Property vs. LPN Development Public | Lalin Property vs. Supalai Public |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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