Correlation Between Premier Marketing and BPS TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both Premier Marketing and BPS TECHNOLOGY 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 Premier Marketing and BPS TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premier Marketing Public and BPS TECHNOLOGY PUBLIC, you can compare the effects of market volatilities on Premier Marketing and BPS TECHNOLOGY 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 Premier Marketing with a short position of BPS TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Marketing and BPS TECHNOLOGY.
Diversification Opportunities for Premier Marketing and BPS TECHNOLOGY
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Premier and BPS is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Premier Marketing Public and BPS TECHNOLOGY PUBLIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BPS TECHNOLOGY PUBLIC and Premier Marketing 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 Premier Marketing Public are associated (or correlated) with BPS TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BPS TECHNOLOGY PUBLIC has no effect on the direction of Premier Marketing i.e., Premier Marketing and BPS TECHNOLOGY go up and down completely randomly.
Pair Corralation between Premier Marketing and BPS TECHNOLOGY
Assuming the 90 days horizon Premier Marketing Public is expected to generate 0.22 times more return on investment than BPS TECHNOLOGY. However, Premier Marketing Public is 4.51 times less risky than BPS TECHNOLOGY. It trades about 0.03 of its potential returns per unit of risk. BPS TECHNOLOGY PUBLIC is currently generating about -0.07 per unit of risk. If you would invest 836.00 in Premier Marketing Public on August 26, 2024 and sell it today you would earn a total of 109.00 from holding Premier Marketing Public or generate 13.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 32.37% |
| Values | Daily Returns |
Premier Marketing Public vs. BPS TECHNOLOGY PUBLIC
Performance |
| Timeline |
| Premier Marketing Public |
| BPS TECHNOLOGY PUBLIC |
Premier Marketing and BPS TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premier Marketing and BPS TECHNOLOGY
The main advantage of trading using opposite Premier Marketing and BPS TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premier Marketing position performs unexpectedly, BPS TECHNOLOGY 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 BPS TECHNOLOGY will offset losses from the drop in BPS TECHNOLOGY's long position.| Premier Marketing vs. CP ALL Public | Premier Marketing vs. Thai Union Group | Premier Marketing vs. Minor International Public | Premier Marketing vs. Central Pattana Public |
| BPS TECHNOLOGY vs. Delta Electronics Public | BPS TECHNOLOGY vs. Delta Electronics Public | BPS TECHNOLOGY vs. Airports of Thailand | BPS TECHNOLOGY vs. Airports of Thailand |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |