Correlation Between Porn Prom and Bangkok Land
Can any of the company-specific risk be diversified away by investing in both Porn Prom and Bangkok Land 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 Porn Prom and Bangkok Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Porn Prom Metal and Bangkok Land Public, you can compare the effects of market volatilities on Porn Prom and Bangkok Land 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 Porn Prom with a short position of Bangkok Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Porn Prom and Bangkok Land.
Diversification Opportunities for Porn Prom and Bangkok Land
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Porn and Bangkok is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Porn Prom Metal and Bangkok Land Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangkok Land Public and Porn Prom 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 Porn Prom Metal are associated (or correlated) with Bangkok Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bangkok Land Public has no effect on the direction of Porn Prom i.e., Porn Prom and Bangkok Land go up and down completely randomly.
Pair Corralation between Porn Prom and Bangkok Land
Assuming the 90 days trading horizon Porn Prom is expected to generate 56.79 times less return on investment than Bangkok Land. But when comparing it to its historical volatility, Porn Prom Metal is 15.6 times less risky than Bangkok Land. It trades about 0.01 of its potential returns per unit of risk. Bangkok Land Public is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 84.00 in Bangkok Land Public on September 1, 2024 and sell it today you would lose (24.00) from holding Bangkok Land Public or give up 28.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Porn Prom Metal vs. Bangkok Land Public
Performance |
| Timeline |
| Porn Prom Metal |
| Bangkok Land Public |
Porn Prom and Bangkok Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Porn Prom and Bangkok Land
The main advantage of trading using opposite Porn Prom and Bangkok Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Porn Prom position performs unexpectedly, Bangkok Land 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 Land will offset losses from the drop in Bangkok Land's long position.| Porn Prom vs. Project Planning Service | Porn Prom vs. Panjawattana Plastic Public | Porn Prom vs. Pico Public | Porn Prom vs. Prodigy Public |
| Bangkok Land vs. Siri Prime Office | Bangkok Land vs. BTS Group Holdings | Bangkok Land vs. Quality Houses Public | Bangkok Land vs. Land and Houses |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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