Correlation Between Royal Plus and Bless Asset
Can any of the company-specific risk be diversified away by investing in both Royal Plus and Bless Asset 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 Royal Plus and Bless Asset into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Royal Plus PCL and Bless Asset Group, you can compare the effects of market volatilities on Royal Plus and Bless Asset 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 Royal Plus with a short position of Bless Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Royal Plus and Bless Asset.
Diversification Opportunities for Royal Plus and Bless Asset
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Royal and Bless is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Royal Plus PCL and Bless Asset Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bless Asset Group and Royal Plus 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 Royal Plus PCL are associated (or correlated) with Bless Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bless Asset Group has no effect on the direction of Royal Plus i.e., Royal Plus and Bless Asset go up and down completely randomly.
Pair Corralation between Royal Plus and Bless Asset
Assuming the 90 days trading horizon Royal Plus PCL is expected to generate 0.73 times more return on investment than Bless Asset. However, Royal Plus PCL is 1.38 times less risky than Bless Asset. It trades about -0.01 of its potential returns per unit of risk. Bless Asset Group is currently generating about -0.03 per unit of risk. If you would invest 759.00 in Royal Plus PCL on September 12, 2024 and sell it today you would lose (254.00) from holding Royal Plus PCL or give up 33.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Royal Plus PCL vs. Bless Asset Group
Performance |
| Timeline |
| Royal Plus PCL |
| Bless Asset Group |
Royal Plus and Bless Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Royal Plus and Bless Asset
The main advantage of trading using opposite Royal Plus and Bless Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Royal Plus position performs unexpectedly, Bless Asset 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 Bless Asset will offset losses from the drop in Bless Asset's long position.| Royal Plus vs. Delta Electronics Public | Royal Plus vs. Delta Electronics Public | Royal Plus vs. Airports of Thailand | Royal Plus vs. Airports of Thailand |
| Bless Asset vs. Chamni Eye PCL | Bless Asset vs. Bioscience Animal Health | Bless Asset vs. CAZ Public | Bless Asset vs. Chewathai Public |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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