Correlation Between Minor International and BTS Group
Can any of the company-specific risk be diversified away by investing in both Minor International and BTS Group 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 Minor International and BTS Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Minor International Public and BTS Group Holdings, you can compare the effects of market volatilities on Minor International and BTS Group 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 Minor International with a short position of BTS Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Minor International and BTS Group.
Diversification Opportunities for Minor International and BTS Group
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Minor and BTS is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Minor International Public and BTS Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTS Group Holdings and Minor International 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 Minor International Public are associated (or correlated) with BTS Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTS Group Holdings has no effect on the direction of Minor International i.e., Minor International and BTS Group go up and down completely randomly.
Pair Corralation between Minor International and BTS Group
Assuming the 90 days trading horizon Minor International Public is expected to generate 0.77 times more return on investment than BTS Group. However, Minor International Public is 1.31 times less risky than BTS Group. It trades about -0.01 of its potential returns per unit of risk. BTS Group Holdings is currently generating about -0.03 per unit of risk. If you would invest 2,969 in Minor International Public on August 30, 2024 and sell it today you would lose (294.00) from holding Minor International Public or give up 9.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Minor International Public vs. BTS Group Holdings
Performance |
| Timeline |
| Minor International |
| BTS Group Holdings |
Minor International and BTS Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Minor International and BTS Group
The main advantage of trading using opposite Minor International and BTS Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Minor International position performs unexpectedly, BTS Group 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 BTS Group will offset losses from the drop in BTS Group's long position.| Minor International vs. CP ALL Public | Minor International vs. Bangkok Dusit Medical | Minor International vs. Central Pattana Public | Minor International vs. Advanced Info Service |
| BTS Group vs. Bangkok Expressway and | BTS Group vs. CP ALL Public | BTS Group vs. Airports of Thailand | BTS Group 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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