Correlation Between Rojana Industrial and Bangchak Public
Can any of the company-specific risk be diversified away by investing in both Rojana Industrial 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 Rojana Industrial and Bangchak Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rojana Industrial Park and Bangchak Public, you can compare the effects of market volatilities on Rojana Industrial 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 Rojana Industrial with a short position of Bangchak Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rojana Industrial and Bangchak Public.
Diversification Opportunities for Rojana Industrial and Bangchak Public
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Rojana and Bangchak is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Rojana Industrial Park and Bangchak Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bangchak Public and Rojana Industrial 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 Rojana Industrial Park 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 Rojana Industrial i.e., Rojana Industrial and Bangchak Public go up and down completely randomly.
Pair Corralation between Rojana Industrial and Bangchak Public
Assuming the 90 days trading horizon Rojana Industrial Park is expected to under-perform the Bangchak Public. But the stock apears to be less risky and, when comparing its historical volatility, Rojana Industrial Park is 1.65 times less risky than Bangchak Public. The stock trades about -0.25 of its potential returns per unit of risk. The Bangchak Public is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,275 in Bangchak Public on September 12, 2024 and sell it today you would lose (75.00) from holding Bangchak Public or give up 2.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rojana Industrial Park vs. Bangchak Public
Performance |
| Timeline |
| Rojana Industrial Park |
| Bangchak Public |
Rojana Industrial and Bangchak Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rojana Industrial and Bangchak Public
The main advantage of trading using opposite Rojana Industrial and Bangchak Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rojana Industrial 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.| Rojana Industrial vs. PTT Global Chemical | Rojana Industrial vs. Quality Construction Products | Rojana Industrial vs. Bhiraj Office Leasehold | Rojana Industrial vs. Lohakit Metal Public |
| Bangchak Public vs. IRPC Public | Bangchak Public vs. PTT Exploration and | Bangchak Public vs. Star Petroleum Refining | Bangchak Public vs. PTG Energy PCL |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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